Bank Mutual's net interest margin was 3.15% and 3.09% during the three- and twelve-month periods ended December 31, 2017, respectively, which compared to 3.00% and 2.98% during the same periods in 2016 (excluding three and five basis points of benefit related to the aforementioned call premiums
in the three- and twelve-month periods of 2016, respectively).
President and CEO, David Baumgarten, said, 'We are certainly pleased with the improvement in our net interest income, which was driven by continued growth in our earning assets and modest expansion of our net interest margin, excluding the consideration of call premiums
in prior periods.
These debentures will be subordinated to all other funded debt of the company and will be callable, in whole or in part, at any time at its option, subject to declining call premiums
during the first five years.
Fortunately, we were able to reconfigure our portfolio into more fixed income securities and generate substantial call premiums
during the quarter.
Thus, tax reasons imply that issuing repurchasable debt and/or BIPOs dominate issuing callable debt with a schedule of fixed call premiums
Net proceeds are estimated to be about USD1.78bn, which URNA will use to redeem USD750m principal amount of its 5.75% senior secured notes due 2018 and USD750m of its 8.375% senior subordinated notes due 2020 and pay the associated call premiums
However, differential taxable call premiums
in call prices may lead to a violation of this condition.
Proceeds combined with cash on hand will refinance the currently callable part of each of its outstanding corporate-level senior secured notes together with about USD590m of principal, accrued interest, fees and call premiums
and retire its project-level BRSP term loan facility that includes the repayment of about USD218m of principal as well as accrued interest and fees.
Proceeds will be used by URNA to redeem its 7 3/4% senior subordinated notes due 2013, 7% senior subordinated notes due 2014, pay for call premiums
and accrued but unpaid interest till the redemption date of those notes and related expenses.