Citigroup Global Markets saw nearly 65% take-up by the early deadline of its tender offer to repurchase up to US$750 million worth of Bancolombia SA debt maturing in 2020 and 2022.
The offering from Citigroup Global Markets, which launched in late November, included the Colombian bank's outstanding 6.125% subordinated notes due 2020 and 5.125% subordinated notes due 2022.
As of the Dec. 9 early tender deadline, debt holders tendered some $81.4 million worth of the 2020 notes and about $404.6 million of the 2022 notes, for a total of about $486 million. The tender offer expires Dec. 23, though tenders after Dec. 9 will not be entitled to an early tender premium of $30.
Bancolombia noted that Citigroup Global Markets, which is making the offer and is serving as deal manager along with J.P. Morgan Securities LLC, plans to exchange the notes it repurchased for "a decrease in the proceeds of certain new notes to be issued" by Bancolombia in a new offering.
Bancolombia said that it expects to price that new offering on Dec. 10.