Irish Life to tender for €840 million notes, prepays some perpetuals

By Susanna Moon

Chicago, May 31 - Irish Life & Permanent Group Holdings plc said it expects to launch a cash tender offer for up to €840 million of its subordinated debt.

Irish life expects to pay 20% of the nominal value, except for one series of zero-coupon subordinated liabilities where the cash price is expected to be 8.6355.

No payment will be made for accrued interest on the debt.

The company also plans to hold meetings to amend the notes to allow it to redeem any notes remaining after the tender offer.

The offer is in response to the statement by the minister for finance on May 11 "with regard to burden sharing with subordinated bondholders" of the company, according to a company press release.

If the notes are not purchased under the offer, "the government will take whatever steps it considers necessary to maximize burden sharing," the release continued.

The company said it will begin the offer "in the near future."

Separately, Irish Life prepaid on May 17 three upper tier 2 perpetual subordinated loans made in an original nominal amount of about €318 million, which generated €290 million of core equity tier 1 capital, the release noted.

The offer and prepayment will strengthen the quality of the company's capital base and will contribute to meeting its obligation to raise €4 billion of core tier 1 capital to satisfy the regulatory capital requirements of the Central Bank of Ireland, the company said.

The financial services and insurance company is based in Dublin.

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