Bahrain's Gulf International Bank purchases $27 million floaters in Dutch auction tender

By Jennifer Chiou

New York, July 6 - Gulf International Bank BSC said it accepted for purchase $27,002,000 of its $400 million of subordinated step-up floating-rate notes due 2015 at the conclusion of its modified Dutch auction tender offer.

The tender began on June 17, when the company stated that it does not plan to call the notes on their call date falling in September 2010 due to adverse market conditions.

The offer expired at noon ET on June 26. The settlement date was July 1.

The company paid $780 per $1,000 principal amount. The price range for the tender offer was $770 to $1,000 per $1,000 principal amount of notes.

The bank selected the lowest price equal to or above the minimum purchase price to allow it to purchase up to $100 million principal amount of notes.

Noteholders also received accrued interest up to but excluding the settlement date.

The bank previously said it was seeking to take advantage of the prevailing market conditions to repurchase some of its debt at a price below par value, with the aim of reducing its overall debt and further strengthening its financial position.

The dealer managers were Barclays Bank plc (call liability management group at +44 0 20 7773 8575) and J.P. Morgan Securities Ltd. (call Osama Al-Adhamy or Marc Lewell at +44 0 20 7325 5266 or +44 0 20 7779 2468).

The information agent was Lucid Issuer Services Ltd. (call Yves Theis at +44 0 20 7704 0880).

The bank is based in Manama, Kingdom of Bahrain.

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