J.P. Morgan Launches Stabilization for Novo Banco Securities

Understanding J.P. Morgan's Role in Securities Stabilization

J.P. Morgan S.E has recently taken significant steps in initiating stabilization measures for the securities issued by Novo Banco S.A. This decision signals the bank's commitment to supporting market prices effectively. As the stabilization coordinator, J.P. Morgan S.E is collaborating with several key financial players, including BofA Securities, Deutsche Bank, Societe Generale, and UBS Investment Bank, to oversee the EUR 500 million securities offering.

Details of the Securities Offering

The securities being stabilized are the EUR 6-Non-Call-5-year Fixed/Floating Rate Callable Senior Preferred Notes, which are scheduled to be listed on Interbolsa and Euronext Dublin. The specific offer price has yet to be confirmed; however, the transaction involves a substantial scale of EUR 100,000 by 100,000 units, underscoring the significant size and potential impact of this financial instrument.

What Stabilization Means for Investors

The stabilization process is designed to help maintain price stability in the market following the issuance of these securities. Commencing today and potentially continuing until a specific cutoff period in 2025, this process allows the stabilization managers the option to over-allot securities by as much as 5% of the total nominal amount. The intention is to uphold investor confidence and pricing security in the aftermarket.

Conditions Surrounding Stabilization Activities

Stabilization transactions will be executed OTC, with the details of the specific venues to be confirmed. It's critical for potential investors to understand that stabilization activities are not guaranteed and can cease at any moment within the defined timeframe. Moreover, the maximum size of the over-allotment has been determined, ensuring that the securities allotted will not surpass 105% of the total aggregate principal amount.

Legal Notice and Market Implications

This recent announcement serves merely as informative content and should not be construed as an offer to subscribe or purchase securities from Novo Banco S.A. It is essential to note that the securities have not been registered under the United States Securities Act of 1933, which means they cannot be offered or sold within the U.S. without appropriate registration or exemption. Additionally, there will be no public offering of these securities in the United States.

Target Audience for the Announcement

The issued information is tailored for an audience outside the United Kingdom or for those within the country who possess the necessary professional investment experience or are classified as high-net-worth entities. This messaging also extends to qualified investors in any EEA Member State in line with the Prospectus Directive.

Frequently Asked Questions

What is the purpose of the stabilization measures?

The stabilization measures aim to support market prices for Novo Banco's newly issued securities and ensure pricing stability.

Who is managing the stabilization process?

J.P. Morgan S.E leads the stabilization process and works alongside BofA Securities, Deutsche Bank, Societe Generale, and UBS Investment Bank.

What are the specific securities involved in this offering?

The offering includes EUR 6-Non-Call-5-year Fixed/Floating Rate Callable Senior Preferred Notes.

Will these securities be offered in the United States?

No, the securities have not been registered under U.S. law and cannot be offered in the United States.

Who is the target audience for this investment offering?

The offering is aimed at professional investors or high-net-worth entities, particularly those outside the United Kingdom.

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