Bank of Ireland gets tenders for C$138.04 million fixed/floating notes

By Angela McDaniels

Tacoma, Wash., Feb. 10 - The Bank of Ireland received tenders for C$138,038,000 of notes in the 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.

The offers began on Feb. 2 and ended at 5 p.m. ET on Feb. 9.

Holders tendered C$82,599,000 of the 2015 notes and C$55,439,000 of the 2018 notes.

Holders were offered either Canadian dollar-denominated 6¾% notes due Jan. 30, 2012 or euro-denominated 6¾% notes due Jan. 30, 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.

Holders of C$62,626,000 of the outstanding notes chose Canadian dollar-denominated notes, and holders of C$75,412,000 of the outstanding notes chose euro-denominated notes.

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

For holders who chose 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 foreign exchange rate was set at 0.73819.

In total, the bank will issue C$33,916,000 of Canadian-dollar denominated notes, issue €30,339,000 of euro-denominated notes and pay C$2.45 million of cash including C$2.18 million for accrued interest, C$27,419.41 for rounding amounts and C$245,290 in respect of cash exit amounts.

The settlement date will be Feb. 17.

Following settlement of the exchange offers, C$138,721,000 of the 2015 notes and C$89,733,000 of the 2018 notes will remain outstanding.

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

When the offers began, the bank said it might 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 exchange offers were 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 was to enhance its core capital base.

The dealer manager was 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 was Equity Financial Trust Co. (416 361-0152 or corporateactions@equityfinancialtrust.com).

The issuer is a Dublin-based commercial bank.

© 2015 Prospect News.
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