SOURCE: Banco Hipotecario

April 24, 2009 09:47 ET

Banco Hipotecario S.A. Announces Completion of Its Previously Announced Tender Offer and Acceptance of Tendered Notes

BUENOS AIRES, ARGENTINA--(Marketwire - April 24, 2009) - Banco Hipotecario S.A. announced today that its previously announced tender offer (the "Tender Offer") to purchase for cash up to US$85,850,000 aggregate principal amount of its U.S. Dollar-Denominated Notes due 2010 (the "USD Notes") and up to US$53,772,000 aggregate principal amount of its Argentine Peso-linked Notes due 2010 (the "ARS Peso-linked Notes" and together with the USD Notes, the "Eligible Notes") expired at 11:59 p.m., New York City time on April 23, 2009 (the "Expiration Date").

Banco Hipotecario received aggregate tenders for a total of US$26,114,000 principal amount of Eligible Notes, consisting of (i) US$16,424,000 aggregate principal amount of the outstanding USD Notes and (ii) of US$9,690,000 aggregate principal amount of the outstanding ARS Peso-linked Notes. Banco Hipotecario accepted for payment all of the Eligible Notes tendered prior to the Expiration Date. The settlement of all tendered Eligible Notes is expected to occur on April 28, 2009.

Banco Hipotecario believes that this transaction reflects its financial flexibility to manage liabilities in a period of volatile market conditions.

The Tender Offer was made in accordance with the terms and conditions set forth in Banco Hipotecario's Offer to Purchase dated March 23, 2009 (the "Offer to Purchase"). Further details about the terms and conditions of the Tender Offer are set forth in the Offer to Purchase.

In connection with the Tender Offer, Barclays Capital acted as the Dealer Manager and Bondholder Communications Group acted as the Information and Tender Agent. Questions may be directed to Barclays Capital toll free at +1 800 438 3242 or collect at +1 212 528 7581, attention: Liability Management Group. Requests for documents should be directed to the Information and Tender Agent, Attn: Belinda Hernández, in London at +44 (0) 20 7382 4580 or in New York at +1 212 809 2663.

Banco Hipotecario S.A. is a commercial bank that accepts deposits and offers retail and commercial banking services. Banco Hipotecario offers mortgage, personal and corporate loans, credit cards, and insurance services. It operates through a network of 43 branches and 43 additional points of sale located in Argentina.

This press release contains statements that are not statements of historical fact, but instead are forward-looking statements. The words "will," "may," "designed to," "outlook," "believes," "should," "anticipates," "plans," "expects," "intends," "estimates" and similar expressions identify these forward-looking statements. Because these forward-looking statements are also subject to risks and uncertainties, actual results may differ materially from the expectations expressed in the forward-looking statements. Banco Hipotecario undertakes no obligation to update or revise these forward-looking statements to reflect subsequent events or circumstances.

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. THE TENDER OFFER IS BEING MADE SOLELY BY THE OFFER TO PURCHASE. 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 SOCIETÀ 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.