Allied Irish Banks completes exchange offer for three series of notes

By Jennifer Chiou

New York, March 22 - Allied Irish Banks, plc closed its offer to exchange several series of its existing notes for three new series of notes to be issued by the bank, according to an 6-K filing with the Securities and Exchange Commission.

The exchange offer ended at 1 p.m. ET on March 19.

Overall, the bank will issue the following amounts of three series of new notes in the offer:

• €419.07 of euro-denominated 10.75% subordinated notes due 2017;

• $177,096,000 of dollar-denominated 10.75% subordinated notes due 2017; and

• £1,096,645,000 of sterling-denominated 11.5% subordinated notes due 2022.

Settlement is slated for March 29.

Holders tendered €212,171,000 of the bank's €400 million of subordinated callable step-up floating-rate notes due 2015 and €332,472,000 of its €500 million of callable subordinated step-up floating-rate notes due 2017 in exchange for the euro-denominated 10.75% notes.

Holders also tendered $221,374,000 of their $400 million of callable step-up subordinated notes due 2015 in exchange for dollar-denominated 10.75% notes.

Meanwhile, holders tendered £548,589,000 of their £700 million of callable subordinated fixed- to floating-rate notes due July 2023, £481,013,000 of their £500 million of subordinated callable fixed- to floating-rate notes due 2025 and £323,311,000 of their £350 million of subordinated callable fixed- to floating-rate notes due 2030 in exchange for the sterling-denominated 11.5% notes.

The amount of notes offered in exchange for notes tendered was determined using the following exchange ratios:

• 80 for euro-denominated floaters due 2015;

• 75 for euro-denominated floaters due 2017;

• 80 for dollar-denominated notes due 2015;

• 91 for sterling-denominated notes due 2023;

• 74.5 for sterling-denominated notes due 2025; and

• 74 for sterling-denominated notes due 2030.

The bank also will pay accrued interest up to the settlement date.

The dealer managers were J.P. Morgan Securities Ltd. (+44 (0) 20 7777 1333 or email sebastien.m.bamsey@jpmorgan.com; +44 (0) 20 7779 2468 or email richard.v.howard@jpmorgan.com) and Morgan Stanley & Co. International plc (+44 (0) 20 7677 5040 or email liabilitymanagementeurope@morganstanley.com).

Lucid Issuer Services Ltd. was the exchange agent.

The bank said the purpose of the offers was to optimize its capital base.

The equity accretion for the bank group is expected to be around €445 million, according to a company release.

Allied Irish Banks, based in Dublin, Ireland, is involved in retail and corporate banking, investment banking and the provision of asset management services.

© 2015 Prospect News.
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