Bank of Ireland holders swap €1.4 billion of nine note series in offer

By Susanna Moon

Chicago, Dec. 17 - Bank of Ireland said it accepted €1.4 billion of securities in an exchange offer for nine series of its outstanding lower tier 2 securities.

The bank said the accepted securities will be exchanged at a discount into new 13-month government-guaranteed senior securities: €499,878,000 of 6.75% notes due Jan. 30, 2012 and £172,913,000 of 6.75% notes due Jan. 30, 2012.

The breakdown for the accepted notes covered by the exchange offer is as follows:

• €218,470,000, or 51%, of €650 million fixed-to-floating subordinated notes due 2019;

• €109,750,000, or 48%, of €600 million callable step-up floating-rate subordinated notes due 2017;

• €155,050,000, or 48%, of €750 million callable step-up floating-rate subordinated notes due Jan. 2017;

• €255,101,000, or 56.5%, of €1,002,157,000 10% subordinated notes due 2020 issued in three tranches;

• $143,430,000, or 46%, of $600 million callable step-up floating-rate subordinated notes due July 2018;

• £97,729,000, or 52%, of £400 million callable fixed-to-floating subordinated notes due January 2018;

• £177,872,000, or 53%, of £450 million callable subordinated step-up notes due September 2020;

• £110,236,000, or 56%, of £197,383,000 10% subordinated notes due 2020; and

• £47,883,000, or 57.5%, of £75 million 10.75% subordinated bonds due 2018 (originally issued by Bristol & West Building Society and initially substituted by Bristol & West plc and then substituted by the governor and company of the Bank of Ireland).

The equity accretion for the Bank of Ireland Group from the exchange offer is expected to be €700 million.

The offer is expected to settle on Dec. 30.

Deutsche Bank AG, London Branch (attn: liability management group, 44 20 7545 8011, or e-mail: liability.management@db.com) and UBS Ltd. (attn: liability management group, 44 20 7567 0525 or e-mail mark-t.watkins@ubs.com) were the dealer managers, and Lucid Issuer Services Ltd. (attn: Yves Theis/David Shilson, 44 20 7704 0880 or e-mail: boi@lucid-is.com) was the exchange agent.

The Bank of Ireland is based in Dublin.

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