ICBC holders tender $104.91 million of perpetuals, give call consent

By Tali Rackner

Norfolk, Va., Jan. 12 – ICBC Standard Bank plc, formerly Standard Bank plc, said holders of $104,914,000 of its $200 million step-up perpetual subordinated notes validly tendered their notes, according to a filing with the London Stock Exchange.

The offer on the $137,913,000 of outstanding notes expired at 11 a.m. ET on Jan. 11. Settlement is expected to take place on Jan. 15.

ICBC also received noteholder approval to modify the note terms to allow the company to redeem any remaining notes after the end of the offer.

As previously reported, the total purchase price will be 102% of par for notes tendered by 11 a.m. ET on Dec. 18, the early date.

The total amount includes an early tender premium of 2%, and the tender purchase price is par.

The company will also pay accrued interest.

A noteholder meeting was held in London on Tuesday and the proposal was approved.

The quorum required at the meeting was two or more persons representing at least 66% of the outstanding notes.

To pass, the measure required a majority of at least 75% of the votes cast in favor.

Noteholders who submitted voting-only instructions in favor of the proposal by 11 a.m. ET on Dec. 18 received the early consent fee of 2%.

The dealer managers are ICBC Standard Bank plc (+44 203 145 8480 / +44 203 145 6131 or marc.giesen@icbcstandard.com / connie.smith@icbcstandard.com / London-legal@icbcstandard.com) and UBS Ltd. (+44 20 7568 2133 or ol-liabilitymanagement-eu@ubs.com).

The tender agent is Lucid Issuer Services Ltd. (+44 20 7704 0880, Paul Kamminga, icbcstandardbank@lucid-is.com).

The company said it reviews its capital and funding requirements, capital and funding profile and market conditions on an ongoing basis and made the tender offer to reduce term debt and the related expenses.

Also, the floating rate may be unattractive to noteholders, especially because they will be subordinated to senior creditors and depositors.

The bank is based in London. On Feb. 1, 2015, Industrial and Commercial Bank of China Ltd. acquired a controlling stake in Standard Bank’s London-based global markets business, which included Standard Bank plc.

© 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.