GTBank has launched an international cash tender for its 2016 Eurobond. Through the offer, the bank seeks to deploy its available US dollar liquidity to the repurchase of the Securities ahead of the scheduled maturity in May 2016.
A statement by the bank said the liability management exercise allowed the bank to efficiently manage its liquidity by addressing in full debt maturing in 2016.
The statement said: The extent to which this goal can be achieved through the offer will depend on the number of Securities that will be tendered, given the voluntary nature of the offer.
The bank intends to maintain cash available to repay any outstanding Securities not tendered in full at maturity.” It added that any Securities purchased by the Offeror would be surrendered for cancellation to the principal paying agent in respect of the Securities.
“If the Offeror decides to accept valid tenders of Securities pursuant to the Offer, the total amount the Offeror will pay Holders on the Settlement Date for each $1,000 in principal amount of Securities accepted for purchase pursuant to the Offer will be an amount (rounded to the nearest $0.01) equal to the Purchase Price and Accrued Interest on such $1,000 in principal amount.
“If, following acceptance of Securities for purchase by the Offeror pursuant to the Offer and following purchase of the relevant Securities on the Settlement Date, a Holder continues to hold in its account with the relevant Clearing System less than U.S.$200,000 in principal amount of Securities, in order to ensure that it will be possible to trade any residual holding in the Clearing Systems such Holder would need to purchase an additional principal amount of Securities such that its aggregate holding amounts to at least U.S.$200,000”, the statement added.
On the purchase price, the bank said that the Offeror would pay for Securities accepted by it for purchase pursuant to the offer at the fixed purchase price of $1,002.50 per $1,000 in principal amount of such Securities.