By Angela McDaniels
Tacoma, Wash., June 13 – Barclays plc and Barclays Bank plc announced the results of their offers to issue new tier 1 securities in exchange for nine series of existing tier 1 securities.
The securities eligible for exchange, the amounts accepted for exchange and the exchange prices are noted in the table below.
The offers began on May 15 and ended at 11:59 p.m. ET on June 12. The settlement date is expected to be June 17, according to a Barclays news release.
In exchange for sterling-denominated securities, holders will receive new sterling securities with an initial interest rate of 7% and a reset sterling interest margin of 5.084%. The securities will be callable beginning Sept. 15, 2019 and have a conversion price of £1.65.
In exchange for euro-denominated securities, holders will receive new euro securities with an initial interest rate of 6.5% and a reset euro interest margin of 5.875%. The securities will be callable beginning Sept. 15, 2019 and will have a conversion price of €2.02.
In exchange for dollar-denominated securities, holders will receive new dollar securities with an initial interest rate of 6.625% and a reset dollar interest margin of 5.022%. The securities will be callable beginning Sept. 15, 2019 and will have a conversion price of $2.77.
In total, Barclays plc will issue £697,602,000 of the new sterling securities, €1,076,730,000 of the new euro securities and $1,211,446,000 of the new dollar securities.
Each offer was subject to the condition that enough existing securities are tendered such that a minimum principal amount of the corresponding new securities are issued. This condition has been satisfied for each exchange offer.
According to a company filing with the London Stock Exchange, the exchange offers will accelerate the transition of the group's capital structure, contribute to its leverage ratio and target and manage interest costs associated with legacy non-CRD IV-compliant securities.
The joint dealer managers for the dollar offer were Banco Bilbao Vizcaya Argentaria, SA, BofA Merrill Lynch, Citigroup Global Markets Ltd., ING Financial Markets LLC and SMBC Nikko Capital Markets Ltd.
The joint dealer managers for the sterling and euro offers were Credit Agricole Corporate and Investment Bank, Credit Suisse Securities (Europe) Ltd., Lloyds Securities Inc., Natixis, Swedbank AB (publ) and UBS Ltd.
The dollar exchange agent was Global Bondholder Services Corp. (866 470-4500 or info@gbsc-usa.com). The sterling and euro exchange agent was Lucid Issuer Services Ltd. (44 20 7704 0880 attn: Thomas Choquet or Yves Theis or Barclays@lucid-is.com). The global coordinator and lead dealer manager was Barclays (800 438-3242, 212 528 7581 or us.lm@barclays.com in the United States; 44 0 20 3134 8515 or eu.lm@barclays.com Europe).
Barclays is a financial services company based in London.
| Securities | Amount outstanding | Amount accepted | Price
|
| Sterling exchange offer
|
| 6% callable perpetual core tier 1 notes | £90,501,000 | £77,962,000 | £1,040
|
| 5.3304% step-up callable perpetual reserve capital instruments | £81,481,000 | £46,108,000 | £960
|
| 6.3688% step-up callable perpetual reserve capital instruments | £94,703,000 | £611.55 million | £1,050
|
| 6% non-cumulative callable preference shares | £750 million | £540.7 million | £1,030
|
| Euro exchange offer
|
| 4.75% non-cumulative callable preference shares | €1.4 billion | €1,081,440,000 | €1,000
|
| Dollar exchange offer
|
| 6.86% callable perpetual core tier 1 notes | $681,013,000 | $111,813,000 | $1,135
|
| 5.926% step-up callable perpetual reserve capital instruments | $533,064,000 | $374,067,000 | $1,090
|
| 7.434% step-up callable perpetual reserve capital instruments | $346,565,000 | $229,414,000 | $1,155
|
| 6.278% series 1 non-cumulative callable dollar preference shares | $1 billion | $418.67 million | $1,060
|
|
|
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