Anglo Irish accepts tenders for €307.18 million floaters due 2014, €459.45 million due 2016

By Jennifer Chiou

New York, Dec. 21 - Anglo Irish Bank Corp. Ltd. said it received and accepted tenders for €307,178,000 of its €325,188,000 of floating-rate subordinated notes due 2014 and €459,448,000 of its €500 million of callable subordinated floating-rate notes due 2016 in the second of two completed exchange offers.

In an offer that ended at 11 a.m. ET on Nov. 19, the company received tenders for €690.22 million, or 92.03%, of its €750 million of dated subordinated floating-rate notes due 2017.

The offers began on Oct. 21, and the most recent one wrapped at 11 a.m. ET on Dec. 20.

The bank offered new euro-denominated floaters due 2011 and accrued interest in cash. The exchange ratio was 0.2, and the new notes will be issued in minimum denominations of €50,000.

Settlement for the second offer is slated for Dec. 23.

In exchange for the floaters due 2014 and 2016, Anglo Irish said it will issue €149,075,400 of the new floaters and pay €5,374,972.60 in cash, comprised of €1,125,172.60 for interest and €4,249,800 for the cash exit amount. In addition, holders of the 2016 notes will be required to pay €315,403.02 to the bank for accrued interest payments.

These new notes will be consolidated and form a single series with the €136,804,600 of floaters due 2011 issued by the bank on Nov. 24 for the notes due 2017.

As already reported, holders who did not tender enough notes to meet the minimum denomination condition will instead receive a cash amount equal to the value of the notes they would have received had their notes been exchanged.

The new notes will bear interest at Euribor plus 375 basis points.

The bank is also seeking noteholder consent to redeem the notes at an amount equal to €0.01 per €1,000 principal amount after the settlement of the exchange offers. By tendering their notes, holders have also appointed the exchange and tabulation agent as their proxy to vote in favor of the extraordinary resolution at a noteholder meeting.

A meeting for the 2016 noteholders was scheduled for Nov. 19, and the second meeting of the 2016 holders and the meeting of the 2014 noteholders will still be held on Dec. 22.

The bank said that it was undertaking the offers and proposed amendments to create additional core tier 1 capital and to strengthen the quality of its credit base.

Of the €750 million of originally issued notes due 2014, Anglo Irish holds €424,812,000 principal amount.

J.P. Morgan Securities Ltd. (44 20 7777 1333) was the dealer manager. The exchange agent was Lucid Issuer Services Ltd. (44 20 7704 0880).

Based in Dublin, Anglo Irish Bank operates a chain of banks and financial services centers.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.