RBS secures consents for several series of covered bonds at meeting

By Susanna Moon

Chicago, Sept. 8 – Royal Bank of Scotland plc said holders of 72.45% of its covered bond series represented at the meeting last Friday voted to maintain the company as a swap provider.

The final voting deadline was 6 a.m. ET on Aug. 18, and the measure was announced on July 29 by RBS, along with RBS Covered Bonds LLP.

The company sought consents from holders of the following covered bond series:

• €1.5 billion of 3% series 2 covered bonds due September 2015;

• €2 billion of 3.875% series 3 covered bonds due October 2020;

• €1 billion of 4.125% series 4 covered bonds due January 2018;

• €2 billion of 4% series 5 covered bonds due March 2016;

• €2 billion of 2.5% series 6 covered bonds due September 2014;

• €750 million of 3.375% series 7 covered bonds due November 2016; and

• £1 billion of 5.125% series 8 covered bonds due January 2024.

As previously announced, the company’s long-term unsecured and unsubordinated debt obligations were downgraded on March 13 to Baa1 from A3 by Moody’s Investors Services.

As a result of the downgrade, in order for RBS to remain as swap provider for the interest rate swap agreement and the RBS Covered Bond swap agreement, it had to take remedial action such as obtaining a guarantee of its obligations, a novation of its obligations to an alternative swap counterparty or another action that will not adversely affect the rating of the covered bonds.

The company decided to seek the consent of the covered bondholders to amend the swap agreements in order to ensure that it can continue to act as swap provider and implement the revised Moody’s criteria, including lowering certain Moody’s collateral and transfer triggers.

The dealer manager was RBS (attn.: liability management group, liabilitymanagement@rbs.com or 44 20 7085 8056/3781). The tabulation agent was Citibank NA, London Branch (attn.: exchange team - agency & trust, exchange.gats@citi.com or 44 20 7508 3867).

The financial services company is based in Edinburgh.

© 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.