Irish Life adds four series to tender offer for lower tier 2 notes

By Jennifer Chiou

New York, July 22 - Irish Life & Permanent plc announced the addition of four separate series of notes to its various tender offers for its lower tier 2 debt securities.

The tender offers began June 2 and involve the company's €18 million of index-linked notes due August 2011 and €200 million step-up floating-rate subordinated notes due 2015.

Joining those notes are:

• €10 million of fixed-rate notes due Nov. 28, 2035;

• €5 million of fixed-rate and CMS30-linked floating-rate subordinated notes due 2018;

• €45 million of callable subordinated floating-rate notes due 2018 (ISIN: XS0373051209); and

• €20 million of callable subordinated floating-rate notes due 2018 (ISIN: XS0373051894).

These notes make up the additional delayed settlement notes.

For all notes above, the early tender deadline is 11 a.m. ET on Aug. 9, and the voting deadline is 10 a.m. on Aug. 22. The meeting time and the tender offer expiration are 5 a.m. ET on Aug. 24.

The purchase price on offer is 20% of par for notes tendered by the early tender deadline and 17.5% of par for notes tendered after that time but before the offer expiration.

These holders are also being asked to approve an amendment that would allow the company to redeem all, but not some only, of the notes that remain outstanding after the completion of the offer at 0.001% of par.

As already reported, the offers are meant to strengthen the quality of the company's capital base and to contribute to meeting its regulatory capital requirements. The Central Bank of Ireland is requiring the company to raise its core tier 1 capital by €4 billion.

More offers

In the offer for several other series of lower tier 2 debt securities, the company said it recorded tenders for €507.02 million of notes on July 1.

The tendered notes included:

• All €10 million of the company's variable-rate notes due March 2023;

• All €10 million of its callable subordinated floating-rate notes due 2015;

• €49.9 million of its €50 million step-up floating-rate notes due Aug. 10, 2015;

• All €50 million of its floating-rate notes due 2016;

• €61 million of its €75 million subordinated callable floating-rate notes due 2017;

• €265,256,000 of its €300 million fixed/floating-rate step-up callable subordinated notes due 2017;

• All €5 million of its floored CMS-linked notes due June 25, 2018;

• All €25 million of its subordinated callable fixed-rate notes due 2018; and

• €30,864,000 of its €54.65 million non-callable subordinated capital notes due 2018.

All of the tendered notes were accepted for purchase on July 5.

For notes tendered by 11 a.m. ET on June 16, the early tender deadline, the purchase price was 8.6365% of par for the non-callable subordinated capital notes due 2018 and 20% of par for the remaining notes.

For notes tendered after the early tender deadline and prior to 5 a.m. ET on July 1, the purchase price was 7.5575% of par for the non-callable subordinated capital notes due 2018 and 17.5% of par for the remaining notes.

No amount was paid for accrued interest.

The company also asked the holders to approve an amendment to the terms of the debt securities that would give it the option to redeem all, but not only some, of the debt securities that remain outstanding after the completion of the offer. The redemption price would be 0.001% of par.

By tendering by 5 a.m. ET on June 29, the voting deadline, holders automatically agreed to vote in favor of the change at a meeting at 5 a.m. ET on July 1. Holders had the option to deliver voting instructions without tendering their notes.

The extraordinary resolution passed at all of the meetings except for the meeting for the holders of the non-callable subordinated capital notes due 2018. As a result, all of the debt securities not tendered in the offer other than the non-callable subordinated capital notes due 2018 were redeemed at 0.001% of par on July 5.

The dealer manager for all of the offers is Deutsche Bank AG, London Branch (44 20 7545 8011 or liability.management@db.com). The tender agent is Lucid Issuer Services Ltd. (44 20 7704 0880 or irishlife@lucid-is.com).

The financial services and insurance company is based in Dublin.

© 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.