African Bank buys all CHF 203.27 million, $69.44 million note tenders

New York, July 14 – African Bank Ltd. said it accepted all CHF 203.27 million and $69.44 million of validly tendered notes in its offer to buy any and all of five series of notes and up to a maximum amount of two other notes.

No tenders were pro rated, according to a news release.

The issuer also announced pricing for the maximum portion of the tender offer.

African Bank divided the tender into two parts, an any-and-all offer and a maximum offer.

Holders tendered the following notes in the any-and-all offer:

• CHF 86,452,000 of the CHF 136,848,000 of outstanding 5% notes due April 2022 at a tender price of 94.5;

• CHF 28,268,000 of the CHF 81,972,000 of outstanding 5½% notes due June 2021 at a tender price of 97.5;

• CHF 39,832,000 of the CHF 93,032,000 of outstanding 4% notes due July 2020 at a tender price of 94;

• CHF 47,716,000 of the CHF 119.86 million of outstanding 4.75% notes due March 2019 at a tender price of 98.5; and

• None of the $25.6 million of 2.4% notes due November 2018 at a tender price of 90.5.

In the maximum tender offer, the bank was offering to purchase an amount of notes equal to $500 million less the payment for the any-and-all offer. Pricing was set using a modified Dutch auction.

Holders tendered as follows:

• $22,487,200 of the $270,732,000 of outstanding 8 1/8% notes due October 2020. The tender price was set at 99 compared to the minimum price of 97; and

• $46,956,000 of the $252,647,200 of outstanding 6% notes due February 2020. The tender price was set at 96 compared to the minimum price of 92.

All notes tendered at or below the tender price were accepted for purchase.

The tender offer ended at 11 a.m. ET on July 13.

Settlement will be on July 22, one day later than the previously announced date of July 21.

The offer, announced on July 1, was being made so that the bank can reduce its interest expense and thus improve earnings while maintaining a strong liquidity and regulatory capital position, according to a bank announcement.

The dealer managers are Goldman Sachs International (+44 20 7774 9862 or liabilitymanagement.eu@gs.com), Rand Merchant Bank, a division of FirstRand Bank Ltd., London Branch (+44 20 7939 1731 or Martin.Richardson@rmb.co.uk). The tender and information agent is Lucid Issuer Services Ltd. (+44 20 7704 0880 or africanbank@lucid-is.com).

African Bank is a Johannesburg-based lender.

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