OP Corporate seeks to move call date of tier 2 instruments to Aug. 28

By Sarah Lizee

Olympia, Wash., July 31 – OP Corporate Bank plc informed holders of its SEK 3.5 billion callable floating-rate dated tier 2 instruments due 2025 (ISIN: XS1280147569) that it is seeking consents to amend terms of the securities.

A meeting will be held by teleconference at 5 a.m. ET on Aug. 24 to consider the proposal, according to a London Stock Exchange notice.

If passed, the amendment would give the issuer the option to redeem all, but not part, of the instruments outstanding on Aug. 28 at par plus accrued interest on giving not less than three business days’ notice to holders.

OP said that due to a delay in obtaining regulatory approval, it is unable to exercise its right to redeem the instruments on the current optional redemption date falling on Aug. 25.

The issuer said it intends to invite holders in due course to tender any and all of their instruments for purchase for cash at par plus accrued interest and to approve the extraordinary resolution.

The issuer intends to schedule the settlement date for the offer on Aug. 25, in order to ensure that holders participating in the offer receive exactly the same consideration as they would have been entitled to receive in connection with the exercise of the issuer’s early redemption option.

The issuer noted that the announcement does not reflect a firm commitment to make the offer.

The quorum required for the extraordinary resolution to be considered at the meeting is two or more persons present and holding or representing in the aggregate not less than 75% of the aggregate nominal amount of the instruments for the time being outstanding.

To be passed at the meeting, the extraordinary resolution requires a majority of at least three fourths of the votes cast in respect of the extraordinary resolution.

If passed, the extraordinary resolution would be binding on all noteholders.

The tender agent is Lucid Issuer Services Ltd.

The bank is based in Helsinki, Finland.

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