EBS, Green Island increase core capital by €131.9 million through discounted tender offers

By Angela McDaniels

Tacoma, Wash., Feb. 24 - EBS Building Society and Green Island Capital Securities plc announced the results of two tender offers that began on Feb. 2 and ended at noon ET on Feb. 23.

In the first tender offer, Green Island accepted €19,206,000 principal amount of its €46,058,000 of perpetual tier 1 pass-through securities.

Chess Capital Securities plc accepted €18,924,000 principal amount of its €37,853,000 perpetual tier 1 pass-through securities

The purchase price is €175 for each €1,000 principal amount of securities. Holders will not receive accrued interest.

The settlement date is expected to be Feb. 25. On that day, EBS subsidiary Haven Mortgages Ltd. will purchase from Green Island €19,206,000 of floating-rate guaranteed non-cumulative perpetual capital securities issued by EBS Capital No. 1 SA, and it will purchase from Chess Capital €18,924,000 of 4.83% step-up guaranteed non-cumulative perpetual capital securities issued by EBS Capital No. 1.

Haven Mortgages will pay €175 per €1,000 of liquidation preference.

Second offer

In the second offer, EBS accepted tenders for:

• All £15 million of its fixed-rate step-up notes due Nov. 26, 2019;

• All £15 million of its fixed-rate step-up notes due Dec. 19, 2019;

• €40.25 million of its €60 million subordinated floating-rate notes due 2014; and

• €72,607,700 of its €100 million of subordinated floating-rate notes due 2016.

EBS will pay £30,000 for each £100,000 principal amount of the 2019 notes, €15,000 for each €50,000 principal amount of the 2014 notes and €300 for each €1,000 principal amount of the 2016 notes.

Holders will also receive accrued interest.

The settlement date is expected to be Feb. 25.

The total impact on the consolidated group core capital of EBS Building Society has been an increase of about €131.9 million, according to a company news release.

EBS said it was seeking to augment its core tier 1 capital base by purchasing the existing non-core tier 1 capital instruments originated from within the EBS group at a price below their par value.

J.P. Morgan Securities Ltd. (44 20 7777 1333) was a dealer manager for both offers. DZ BANK AG Deutsche Zentral-Genossenschaftsbank (49 69 74 47 01) was a dealer manager for the first offer. The tender agent for both offers was Lucid Issuer Services Ltd. (44 20 7704 0880).

EBS is a Dublin-based financial institution.

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