Macquarie Bank Announces Results Of Offer To Purchase For Cash Certain Of Its 6.625% Subordinated Medium-Term Notes, Series A, Due 2021 (The "Notes"), Increase Of Tender Cap And Exercise Of Early Settlement Right

NEW YORK, June 16, 2016 /PRNewswire/ -- Macquarie Bank Limited (the "Bank"), a wholly-owned subsidiary of Macquarie Group Limited (ASX: MQG), announced today that as of 5:00 p.m., New York time, on June 15, 2016 (the "Early Participation Date"), the Bank had received tenders of approximately US$340 million aggregate principal amount of the outstanding Notes pursuant to its cash tender offer (the "Tender Offer") for the Notes listed in the table below. The Bank also announced today that it has increased the Tender Cap to US$175 million aggregate principal amount of the Notes and that it has accepted US$175 million aggregate principal amount of the tendered Notes at a Clearing Spread of 180 basis points.

The following table summarizes the material terms for each US$1,000 aggregate principal amount of Notes:

The Tender Offer is described in the Offer to Purchase, dated June 2, 2016 (the "Offer to Purchase"), and the related Letter of Transmittal, each previously sent to holders of the Notes. Capitalized terms in this announcement have the same meaning as assigned to them in the Offer to Purchase.
Notes tendered by holders and accepted for purchase will be subject to proration as described in the Offer to Purchase. The Bank has been advised by the Tender Agent (as defined below) that the applicable proration factor for Notes validly tendered and not withdrawn at a bid price that results in Clearing Spread of 180 basis points will be approximately 79%.

The Bank also announced today that it has exercised its Early Settlement Right and therefore the settlement date for the Tender Offer will be June 20, 2016. The Notes purchased will be retired and cancelled and will no longer remain outstanding.

Since the Tender Offer was oversubscribed with regards to the increased Tender Cap as of 5:00 p.m., New York time, on the Early Participation Date no Notes tendered after this time will be accepted. Holders who tendered Notes accepted for purchase by the Bank will receive the Total Consideration, which will be determined at 2:00 p.m., New York time, on June 16, 2016 and announced shortly thereafter.

The Total Consideration will include an Early Tender Premium of US$50 per US$1,000 principal amount. In addition to the Total Consideration, holders who tendered Notes accepted for purchase by the Bank will receive a cash payment representing accrued and unpaid interest thereon from the last interest payment or distribution date to, but not including, June 20, 2016.  

The Bank has retained Citigroup Global Markets Inc. ("Citigroup") and J.P. Morgan Securities LLC ("J.P. Morgan") to act as Dealer Managers, D.F. King & Co., Inc. ("D.F. King") to act as Information Agent and D.F. King to act as Tender Agent, in each case in connection with the Tender Offer.  For additional information regarding the terms of the Tender Offer, please contact Citigroup at +1 (800) 558-3745 or J.P. Morgan at +1 (866) 834-4666. Requests for documents and questions regarding the tendering of Notes may be directed to D.F. King by telephone at +1 (800) 283-2170 or by email at [email protected].  

This announcement does not constitute an offer to participate in the Tender Offer. The Tender Offer is being made pursuant to the Offer to Purchase and the Letter of Transmittal, copies of which have been delivered to holders of the Notes, and which set forth the complete terms and conditions of the Tender Offer. Holders are urged to read the Offer to Purchase and the Letter of Transmittal carefully before making any decision with respect to their Notes. The Tender Offer is not being made to, nor will the Bank accept tenders of Notes from, holders in any jurisdiction in which it is unlawful to make such an offer or solicitation. None of the Bank, the Dealer Managers, the Information Agent, the Tender Agent or the fiscal agent for the Notes makes any recommendation as to whether holders should tender their Notes in response to the Tender Offer or at what bid spreads holders should tender their Notes.

Certain statements in this announcement, including those describing the completion of the Tender Offer, constitute forward-looking statements. These statements are not historical facts but instead represent only the Bank's belief regarding future events, many of which, by their nature, are inherently uncertain and outside the Bank's control. It is possible that actual results will differ, possibly materially, from the anticipated results indicated in these statements.

Contact:

Angus Cameron

M: +61 (2) 8232 9992; E: [email protected]  

Sarim Farooqi

M: +1 416 687 1088; E: [email protected]

SOURCE Macquarie Bank Limited