Munich Re sets pricing in tender for 7.45% notes due 2026

By Jennifer Chiou

New York, Aug. 14 - Munich Re America Corp. announced pricing in its cash tender offer for all of its outstanding $500 million of 7.45% senior notes due 2026.

For each $1,000 principal amount, the total payment will be $1,036.98, which was based on the yield on the 5% U.S. Treasury note due May 15, 2037 plus a fixed spread of 250 basis points.

Holders who tender their notes by the consent deadline will receive a fee of $30.00 per $1,000 note, which is included in the payout.

The company will also pay accrued interest to the payment date.

Pricing was set at 2 p.m. ET on Aug. 13.

On Aug. 4, the company said it waived the minimum tender condition, adding that the consent deadline also was pushed back to midnight ET on Aug. 15 from 5 p.m. ET on Aug. 1.

Munich Re previously said it did not receive the required consents that it sought from a majority of holders to amend the reporting covenant in the indenture by the original consent date.

Under the amended offer, the company said it would accept any notes tendered by the expiration date. The tender offer will expire at midnight ET on Aug. 15. The offer began on July 21.

The offer originally was subject to the satisfaction of the minimum tender and supplemental indenture conditions.

Deutsche Bank Securities Inc. (866 627-0391, 212 250-2955, 44 0 20 7545-8011 or e-mail at liability.management@db.com) is the dealer manager and consent solicitation agent.

Global Bondholder Services Corp. (866 470-3700 or 212 430-3774) is the depositary agent and information agent.

Munich Re is a Princeton, N.J.-based reinsurance company.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.