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Novo Banco still below target on bond deal as Monday deadline looms
September 29, 2017 / 1:34 PM / in 23 days

Novo Banco still below target on bond deal as Monday deadline looms

LISBON, Sept 29 (Reuters) - Portugal’s state-rescued Novo Banco has so far reached 73.4 percent of its goal for bondholder acceptance of a discounted bond buyback which is a key condition for the completion of the agreed sale of the lender to U.S. Fund Lonestar.

The bank said in a statement on Friday after several bondholder general assembly meetings in London it now had 4.6 billion euros in firm orders for the early redemption, and that the holders of 20 bond series can still decide to accept the terms of the buyback before Monday’s deadline.

Between the first round of assemblies on Sept. 8 and Friday, the acceptance rate has nearly doubled.

Earlier, a source familiar with the matter said that if the vote fails to get 75 percent backing from bondholders, options could include accepting a lower level of participation and asking bondholders or others to put new equity into the bank or winding it down. (Reporting By Andrei Khalip)

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