Flavia Bondco starts tender offer for Eurovita subordinated notes due 2025

By Mary-Katherine Stinson

Lexington, Ky., Sept. 13 – Flavia Bondco Ltd. launched a five-day cash tender offer for the €40 million outstanding series A fixed-rate subordinated notes due Dec. 22, 2025 (ISIN: XS1325091152) and the €5 million outstanding series B fixed-rate subordinated notes due 2025 (ISIN: IT0005125528), both issued by Eurovita SpA, according to a notice.

For both series, the company is offering to pay €350 per €1,000 principal amount of notes. No accrued interest will be paid.

Repurchased notes will be canceled.

The notice stated that the offeror has the sole discretion to extend, reopen, withdraw or terminate the offer and to amend or waive any of the offer’s terms and conditions at any time.

The offer will expire at 11 a.m. ET on Sept. 20.

Results will be announced on Sept. 21, including the company’s decision on whether to accept tendered notes for purchase and the determination of the settlement date.

The series A notes are currently expected to settle on or around Sept. 27, while the settlement date for the series B notes has not been announced but is expected to be as soon as practicable after the expiration date.

The purpose of the offer is to offer liquidity to bondholders and to assist in a resolution of the issuer’s liabilities.

The notice warns that the issuer may not have sufficient resources to ensure the payments of principal and interest if the offer is not successful.

In addition, on Sept. 12, the offeror entered into certain sale and purchase agreements to purchase €28.5 million of the series A notes and the entire principal amount of the €115 million fixed-rate subordinated notes due 2030 (ISIN: XS2019977557) at par.

On March 30, Eurovita was placed under extraordinary administration under orders issued by the Institute for the Supervision of Insurance of Italy.

It stated in the press release that, according to publicly available information, some Italian banks have reported to have reached a provisional agreement to set up a new company to take on Eurovita's life insurance policies. However, the notes have not been purported to be transferred to the new company.

Kroll Issuer Services Ltd. (+ 44 20 7704 0880, eurovita@is.kroll.com, https://deals.is.kroll.com/eurovita) is the tender agent for the offer.

Flavia Bondco is an entity wholly owned by the indirect majority shareholder of Eurovita, the Fifth Cinven Fund. Milano, Italy-based Eurovita is an insurance 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.