EBS to call two series of perpetuals at discount after amending terms

By Susanna Moon

Chicago, May 31 - EBS Building Society announced plans to redeem at a discount the €125 million of 4.83% step-up guaranteed non-cumulative perpetual capital securities and €125 million of floating-rate guaranteed non-cumulative perpetual capital securities issued by its subsidiary EBS Capital No.1 SA.

EBS Capital will hold a meeting by June 15 to propose amending the terms of the securities to allow EBS Capital to redeem all of the outstanding securities at any time at €100 for each €1,000 liquidation preference.

EBS received written direction on May 31 from the minister for finance requiring the society to exercise its rights to redeem all of the securities at a discount for the purposes of increasing the EBS Group's core tier 1 capital ratio and to minimize the capital burden on the state in a manner, which is consistent with the minister's stated position regarding appropriate burden sharing by holders of subordinated securities of Irish credit institutions, according to an EBS press release.

Chess Capital Securities plc subscribed for the entire issue of the 4.83% securities on July 12, 2005, which it used to back the issue of €125 million perpetual pass-through notes.

Following tender offers in June 2010 and February, Chess redeemed €106,071,000 principal amount of the notes, which it funded by the sale of an equivalent amount of the 2005 capital securities to members of the EBS Group, the release noted.

Green Island Capital Securities plc subscribed for the entire issue of the floaters on July 4, 2007, which it used to back the issue of €125 million perpetual pass-through notes.

Following tender offers in June 2010 and February, Green Island redeemed €98,148,000 principal amount of the notes, which it funded by the sale of an equivalent amount of the 2007 capital securities to members of the EBS Group.

EBS Group holds all of the class A shares in EBS Capital, more than the two thirds needed to pass the proposals at the meetings, the release said. After the proposals are passed, EBS Capital expects to call the securities.

Settlement of the redemption is expected to occur by June 30.

EBS is a Dublin-based financial institution.

© 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.