National Australia Bank seeks consents to convert bonds to soft bullets

By Susanna Moon

Chicago, Aug. 23 – National Australia Bank Ltd. began a consent solicitation to amend four series of covered bonds to convert them into soft bullets.

The proposed amendments would bring into line the terms of the older outstanding series with those “commonly seen in the covered bond market to ensure ongoing cost efficiency of this funding program,” according to a bank announcement.

Covered by the solicitation are the following issues:

• €1 billion 2.625% covered bonds due January 2017;

• NOK 3,125,000,000 5% covered bonds due December 2021, NOK 2 billion of which were issued on Dec. 20, 2011, NOK 500 million of which were issued on Dec. 23, 2011 and NOK 625 million of which were issued on Dec. 30, 2011, and consolidated to form a single series;

• €1 billion 1.875% covered bonds due January 2023; and

• £250 million 3% covered bonds due September 2026.

The bank is seeking to modify the terms of each bond series to convert them from hard bullet covered bonds, with an extended due for payment date, as well as the consequential modification of the covered bond swaps for that series.

The solicitation will end at 11 a.m. ET on Sept. 9.

The consent payment will be 0.05%.

Noteholder meetings have been scheduled for 5 a.m. ET on Sept. 14.

The solicitation agent is Credit Suisse Securities (Europe) Ltd. (+44 20 7883 8763 or liability.management@credit-suisse.com). The tabulation agent is Lucid Issuer Services Ltd. (+44 20 7704 0880, Yves Theis / David Shilson, nab@lucid-is.com).

National Australia Bank is based in Melbourne.

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