National Australia Bank changes conversion trigger for securities

By Angela McDaniels

Tacoma, Wash., Aug. 10 - National Australia Bank Ltd. amended the early conversion trigger for its A$500 million of hybrid tier 1 capital securities (the "stapled securities"), according to a bank news release.

Previously, early conversion was triggered if the bank's closing ordinary share price fell to A$19.40, which is 65% of the ordinary share price when the securities were issued. Following the changes, early conversion will be triggered if the bank's shares close at or below A$19.40 for five consecutive trading days.

The stapled securities were issued in September 2009 to Deutsche Bank AG, London branch.

The bank amended the stapled securities on March 8 so that they will be redeemable on or about Nov. 30, 2012 and on any interest payment date after that date.

If not redeemed, the stapled securities will convert into ordinary shares on or about Nov. 30, 2012 or earlier in certain circumstances.

Conversion would be into a variable number of shares based on the average of the daily volume-weighted average sale prices of National Australia Bank's ordinary shares during the 10 days before the conversion date, less a discount of 1%.

The bank and financial services company is based in Melbourne, Australia.

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