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Depfa Bank gets needed votes at meeting for 1.1 billion preferreds
By Susanna Moon
Chicago, May 21 Depfa Bank plc said it obtained the needed votes to amend three series of preferred securities at meetings held Wednesday.
Depfas parent company, FMS Wertmanagement AoR, said on May 20 that it had received tenders for
361,987,000 of the 400 million of 6.5% guaranteed non-voting non-cumulative perpetual preferred securities issued in two series of 300 million on Oct. 30, 2003 and 100 million on Feb. 9, 2004 by Depfa Funding II LP;
263,554,000 of the 300 million of fixed-rate/variable-rate guaranteed non-voting non-cumulative perpetual preferred securities issued on June 8, 2005 by Depfa Funding III LP; and
499.25 million of the 500 million of fixed-rate/variable-rate guaranteed non-voting non-cumulative perpetual preferred securities issued on March 21, 2007 by Depfa Funding IV LP.
The preferreds are guaranteed by Depfa Bank.
The purchase price is 0.604509 per 1.00 liquidation preference of each Depfa II or Depfa IV preferred and 0.584509 per 1.00 liquidation preference of each Depfa III preferred.
Along with the tender offers, Depfa solicited consents for each series of preferreds, and holders who tendered were required to vote for the proposals.
More background
The company previously said that the proposals had been approved and that it could purchase the preferreds at 0.595 per 1.00 liquidation preference of Depfa II or Depfa IV preferreds and 0.575 per 1.00 liquidation preference of Depfa III preferreds. The bank said it will exercise this option on May 26.
The objective of the offers, as previously noted, was to wind down Depfa and related risk positions in an orderly manner designed to optimize income and minimize losses.
The offer was based on market prices that gave holders an opportunity to exit their positions while reflecting the continuing distressed nature of the securities and also had the goal of optimizing and simplifying Depfas regulatory capital base.
As previously reported, FMS Wertmanagement entered into a commitment agreement with the holders of about 70% of the Depfa II preferreds, 59% of the Depfa III preferreds and 66% of the Depfa IV preferreds. Those holders agreed to tender their preferreds and to vote in favor of the proposals, and the company agreed to pay a commitment fee of 22,139,320 to these holders.
The settlement date has been set for May 21.
Jefferies International Ltd. (44 020 7029 8153, 877 877-0696, 212 284-2435 or project.dublin.tenders@jefferies.com) is the dealer manager. Lucid Issuer Services Ltd. (44 020 7704-0880 or depfa@lucid-is.com) is the tender and tabulation agent.
Depfa Bank is a Dublin-based subsidiary of Hypo Real Estate Holding AG.
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