MILAN, Oct 12 (Reuters) - Banca Carige’s debt swap offer is likely to go through after bondholders have tendered in 455 million euros ($541 million) worth of notes targeted by the offer, the Italian lender said, disclosing the operation’s preliminary results.
The exchange offer, in which Carige offered to convert up to 510 million euros of its junior debt into senior-ranking notes, is a key plank of the troubled bank’s capital raising efforts.
Given the take-up in the offer, Carige said it expects bond holders to approve a mandatory conversion of the debt at upcoming meetings.
Carige has said its business could be at risk if its capital plan, which includes a new share issue for up to 560 million euros and asset disposals in addition to the debt swap, does not go through.
$1 = 0.8421 euros Reporting by Agnieszka Flak; editing by Francesca Landini