Brazil’s Banco BTG Pactual tender for 8¾% perpetuals oversubscribed

New York, Dec. 4 – Brazil’s Banco BTG Pactual said that its tender offer to buy up to $390 million principal amount of its $1.3 billion of outstanding 8¾% perpetual non-cumulative junior subordinated notes was oversubscribed.

As a result, tendered notes will be accepted on a pro rata basis, according to a news release.

By the expiration of the offer at 11:59 p.m. ET on Dec. 1, BTG Pactual had received tenders for $497,912,000, or 38.3%, of the notes.

Settlement is planned for Wednesday.

After completion of the tender, the bank will have $910 million of the notes remaining outstanding of which $231,946,000 will be considered outstanding for the purposes of the note indenture.

BTG Pactual announced the offer on Dec. 1, saying that it would pay par of $1,000 principal amount plus accrued interest up to but excluding the settlement date.

The principal amount includes $1,066,854,000 principal amount of notes held by the bank or its affiliates, including PPLA Investments LP, which “are considered not to be ‘outstanding’ for purposes of the indenture ..., but which will nevertheless be eligible for tender,” the bank said when announcing the offer.

The bank and its affiliates plan to tender all or part of the notes in the offer, the release noted.

Tendered notes may be withdrawn before the end of the offer.

D.F. King & Co., Inc. (212 269-5550, 866 796-3419, fax 212 709-3328 or btgpactual@dfking.com) is the tender and information agent.

The lender is based in Sao Paulo.

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