New York, Oct. 7 - Allied Irish Banks plc priced $2 billion of contingent mandatorily exchangeable notes due Nov. 15, 2010 exchangeable for M&T Bank Corp. common stock at $77.50 per note.
Each note will be mandatorily exchangeable for one M&T Bank share currently owned by Allied Irish. The offering includes a total of 26.7 million notes.
M&T stock closed at $78.91 on Wednesday.
Allied Irish plans to hold an extraordinary general meeting on Nov. 1 to seek shareholder approval.
No interest will be paid on the notes.
Morgan Stanley & Co. and Citigroup Global Markets were the joint bookrunners of the notes, which will be listed on the New York Stock Exchange under the symbol "MTC."
The notes are being issued as part of the process of disposing of Allied Irish's 22.4% shareholding in M&T Bank.
The proposed disposal is also expected to generate approximately €900 million of equivalent equity capital. Allied Irish's board plans to use the equivalent equity capital generated from proceeds to meet part of the bank's revised Prudential Capital Assessment Review requirement of €10.4 billion.
Allied Irish is a Dublin-based financial services company operating principally in Ireland, the United Kingdom, Poland and the United States.
| Issuer: | Allied Irish Banks plc
|
| Issue: | Contingent mandatorily exchangeable notes
|
| Exchange entity: | M&T Bank Corp.
|
| Bookrunners: | Morgan Stanley & Co. and Citigroup Global Markets
|
| Amount: | $2.07 billion
|
| Maturity: | Nov. 15, 2010
|
| Price: | Par, $77.50 per note
|
| Initial exchange ratio: | One share of M&T common stock per note
|
| Distribution: | Registered
|
| Pricing date: | Oct. 6
|
| Settlement date: | Oct. 13
|
| Stock symbol: | NYSE: MTC
|
| Stock reference price: | $78.91
|
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