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Bendigo and Adelaide Bank announces off-market Note Buy-back - BENHB


18/05/2012

Bendigo and Adelaide Bank (BEN) today announced an offer to purchase all of the Unsecured Perpetual Floating Rate Subordinated Notes (Notes) held by Noteholders at 7:00pm (Melbourne time) on Thursday, 17 May 2012 with a registered address in Australia or New Zealand (“Eligible Noteholders”) through an off-market Buy-back (“Buy-back”).

The Buy-back price provides value over the recent trading performance of the Notes. The Buy-back offer price is $80.00 per Note, which represents a 19 per cent premium to the Note trading price on the Record date of May 17, 2012, and an 18 per cent premium to the one month Volume Weighted Average Price (VWAP).

Bendigo and Adelaide Bank Managing Director, Mike Hirst, said the Buy-back was entirely optional, and formed part of the Group’s capital management program.

“These Notes were issued at $100 in 1998, with a margin that reflected the financial market at that time,” Mr Hirst said.

“Since then economic conditions have changed dramatically, and the value of this and other similar instruments have been depressed for some time.

“This Buy-back allows our Noteholders to sell their perpetual Notes at what we believe is a fair price, but also a significant premium to their recent trading history.”

The acceptance period for the Buy-back will close at 5:00pm (Melbourne time) on Monday, 18 June 2012. Eligible Noteholders can choose to sell some or all of their Notes to Bendigo and Adelaide Bank by accepting the Buy-back Offer; or do nothing, thereby retaining their current Note holding.

Proceeds payable to participating Eligible Noteholders are expected to be paid out by Thursday, 28 June 2012.

Notes that are not bought back through the Buy-back offer will remain outstanding on their current terms and listed on the ASX. After the Buy-back, Bendigo and Adelaide Bank will remain strongly capitalised.

For further information please refer to our Off-Market Buy-back Booklet.

Queries related to the Buy-back can be directed to the Bendigo and Adelaide Bank Share Registry on 1800 646 042 within Australia or +61 3 5485 6393 from outside Australia.

Key Dates   Event
17 May 2012   Record Date. Notes held by Eligible Noteholders at 5:00pm (Melbourne time) on this day are eligible to be sold in the Buy-back Offer
18 May 2012   Opening Date. Buy-back Offer opens
30 May 2012   Interest payment. Quarterly interest payment received by Noteholders for the 3 month period ending 15 May 2012
18 June 2012   Closing Date. Buy-back Offer closes – acceptances must be received by 5:00pm (Melbourne time)
20 June 2012   Results. Announcement of Buy-back result
28 June 2012   Settlement. Proceeds will be transferred to registered bank accounts or mailed to participating Noteholders