Taiwan's Cathay United Bank tenders for up to $125 million 5.5% notes

By Angela McDaniels

Tacoma, Wash., April 14 - Cathay United Bank Co., Ltd. has begun a modified Dutch auction tender offer for up to $125 million of its $500 million 5.5% subordinated notes due 2020, according to a bank news release.

The early tender time is 5 p.m. ET on April 27, and the offer will expire at midnight ET on May 12.

Holders who tender must specify a tender price of $820 to $920 per $1,000 principal amount of notes. The tender price includes an early tender premium of $30 for each note tendered by the early tender time.

The bank will also pay accrued interest up to but excluding the payment date, which is expected to be May 18.

Under the modified Dutch auction procedure, Cathay United will accept notes tendered in the order of the lowest to the highest tender prices, in increments of $5, and will select the single lowest price per $1,000 principal amount of notes that will allow it to purchase a principal amount of notes equal to the tender cap.

If the amount of notes tendered at or below the clearing price exceeds the tender cap, then Cathy United will first accept all notes tendered at prices below the clearing price and then the notes tendered at the clearing price on a prorated basis.

JPMorgan is the dealer manager for the offer, and Bank of New York Mellon is the information and tender agent.

Cathay United Bank, based in Taipei, is the commercial banking unit of Cathay Financial Holding Co., Ltd.

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