BUENOS AIRES, Argentina, June 30 /PRNewswire/ -- Banco Hipotecario S.A. (BCBA: BHIP) (the "Bank") announced today that it commenced a tender offer (the "Tender Offer") to purchase for cash all of its outstanding Series 1 10% Notes due 2003, Series 3 10.625% Notes due 2006, Series 4 13% Notes due 2008, Series 6 12.25% Notes due 2002, Series 16 12.625% Notes due 2003, Series 17 9% Notes due 2002, Series 22 8.75% Notes due 2002, Series 23 10.75% Notes due 2004, Series 24 9% Notes due 2005, and Series 25 8% Notes due 2005 (collectively, the "Eligible Notes"). Each series of Eligible Notes is currently in payment default. The purpose of the offer is to repurchase the Eligible Notes that were not exchanged in the Bank's exchange offer consummated in January 2004 following the Argentine economic crisis.
Pursuant to the Tender Offer, for all series of Eligible Notes, Banco Hipotecario will pay 108% of the principal amount of the Eligible Notes validly tendered. No additional amount will be paid in respect of accrued but unpaid interest or past due interest on these Eligible Notes.
Banco Hipotecario will conduct the Tender Offer in accordance with terms and conditions described in its Offer to Purchase dated June 30, 2006. The Tender Offer will expire at 11:59 p.m., New York City time on July 31, 2006, unless extended or earlier terminated (the "Expiration Date").
Holders who validly tender Eligible Notes will not have withdrawal rights, unless Banco Hipotecario materially modifies the terms of the Tender Offer as described in the Offer to Purchase.
Citigroup Global Markets Inc. is acting as the Dealer Manager for the Tender Offer, Dexia Banque Internationale a Luxembourg is acting as the Luxembourg Depository, Citibank Agency & Trust is acting as the Depositary, and Global Bondholder Services Corporation is acting as the Information Agent. Questions may be directed to Citigroup Global Markets Inc. toll free at (800) 558-3745 or collect at +1-212-723-6108, attention: Liability Management Group. Requests for documents should be directed to the Information Agent toll free at (866) 873-7700 or collect at +1-212-430-3774.
Banco Hipotecario S.A. is a sociedad anonima formed under the laws of Argentina in September 1997 to continue the business of Banco Hipotecario Nacional. The Bank distributes its products through a network of 24 branches and 14 sales offices located throughout Argentina.
THIS PRESS RELEASE IS NOT AN OFFER TO PURCHASE OR A SOLICITATION OF AN OFFER TO SELL THE ELIGIBLE NOTES, WHICH MAY BE MADE ONLY PURSUANT TO THE TERMS OF THE OFFER TO PURCHASE AND RELATED LETTER OF TRANSMITTAL. THE TENDER OFFER IS BEING MADE SOLELY BY THE OFFER TO PURCHASE AND LETTER OF TRANSMITTAL. THE TENDER OFFER SHALL NOT BE MADE IN ANY SUCH JURISDICTIONS IN WHICH IT IS NOT PERMITTED TO BE MADE UNDER APPLICABLE LAW.
THE TENDER OFFER IS NOT BEING MADE IN THE REPUBLIC OF ITALY. THE OFFER TO PURCHASE HAS NOT BEEN SUBMITTED TO THE CLEARANCE PROCEDURE OF THE COMMISSIONE NAZIONALE PER LA SOCIETA E LA BORSA (CONSOB) PURSUANT TO ITALIAN LAWS AND REGULATIONS. HOLDERS OF ELIGIBLE NOTES ARE HEREBY NOTIFIED THAT, IF THEY ARE ITALIAN RESIDENTS, THIS OFFER TO PURCHASE IS NOT AVAILABLE TO THEM; NO TENDERS OF ELIGIBLE NOTES WILL BE ACCEPTED FROM THEM; AND ANY SUCH TENDERS SHALL BE INEFFECTIVE AND VOID. NEITHER THIS OFFER TO PURCHASE NOR ANY OTHER OFFERING MATERIAL RELATING TO THIS OFFER TO PURCHASE MAY BE DISTRIBUTED OR MADE AVAILABLE IN THE REPUBLIC OF ITALY.
