Bank of Ireland offers to swap C$366.49 million fixed/floating notes

By Angela McDaniels

Tacoma, Wash., Feb. 2 - The Bank of Ireland began exchange offers for its C$221.32 million of fixed/floating dated subordinated notes due September 2015 and its C$145,172,000 fixed/floating dated subordinated notes due September 2018, according to a bank news release.

Holders are being offered either Canadian dollar-denominated 6¾% notes due January 2012 or euro-denominated 6¾% notes due January 2012.

The new notes will be guaranteed by the Minister for Finance of Ireland. The euro-denominated notes will form a single series with the euro-denominated 6¾% notes due 2012 issued on Dec. 30.

For holders who choose Canadian dollar-denominated notes, the exchange ratio is 52 for the notes due 2015 and 59 for the notes due 2018.

For holders who choose euro-denominated notes, the exchange ratio is equal to (a) the exchange amount multiplied by the foreign exchange rate divided by (b) 100 plus the accrued interest amount. The exchange amount is 52 for the notes due 2015 and 59 for the notes due 2018.

The bank noted that euro-denominated notes will be delivered only through Euroclear and Clearstream, Luxembourg.

Holders must tender at least C$75,000 or €50,000 of notes in order to participate in the exchange.

The bank said it may choose to pay cash for notes received from holders who tender less than the minimum requirement amount. These holders would receive a cash amount equal to the principal amount of the notes they would have received had their notes been exchanged. They would also receive accrued interest.

The offers will end at 5 p.m. ET on Feb. 9.

The exchange offers are conditioned on the receipt by the bank of an eligible liability guarantee certificate from the Minister for Finance of Ireland for the new series of notes.

The bank said the purpose of the exchange offers is to enhance its core capital base.

The dealer manager is RBC Dominion Securities Inc. (contact Chris Laham or Salim Mawani at 877 381-2099, 416 842-6311 or liability.management@rbccm.com). The exchange agent is Equity Financial Trust Co. (416 361-0152 or corporateactions@equityfinancialtrust.com).

The issuer is a Dublin-based commercial bank.

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