Danske amends two note series for demerger, adjourns meeting for third

By Susanna Moon

Chicago, May 31 – Danske Bank OYJ obtained the needed votes to amend two series of its covered bonds at the meetings held Wednesday and adjourned the meeting for the third series, as expected.

Specifically, there were enough holders to form a quorum for the €1 billion of 1.625% covered bonds due 2019 originally issued by Sampo Bank plc and the €1 billion 0.25% covered bonds due 2020, or 50.57% and 51.27%, respectively.

For those two series, the measure was passed by 100% of votes cast for each series, according to a company notice.

For the €1 billion 3.875% covered bonds due 2021 originally issued by Sampo Housing Loan Bank plc, the meeting was adjourned to June 28 in London after failing to meet the quorum on Wednesday, also in line with expectations.

The company predicted the results of the Wednesday meeting based on results of the consent solicitation as of the early deadline, 11 a.m. ET on May 18.

As previously reported, Danske is asking to substitute Danske Mortgage Bank plc as the issuer and also to release and waive rights and claims arising under Finnish law for the demerger, as proposed by an extraordinary resolution for each series.

The quorum required for the May 31 bondholders meetings was 50% for the 2019 covered bonds and the 2020 covered bonds and 75% for the 2021 covered bonds.

The early participation fee is 0.1% for consents submitted in favor of the proposals by the early deadline.

The consent solicitations ended at 11 a.m. ET on May 25.

To pass, the proposals required a majority vote consisting of at least 75% of the votes cast at the meeting.

Danske Bank Group is planning to merge its activities in Finland, consisting of the issuer and Danske Bank A/S, Helsinki Branch into a single branch, in an effort to simplify the organization and improve efficiency, the release noted.

The uniform organizational structure across Nordic markets will be achieved through a cross-border merger in which the issuer will be dissolved and cease to exist, the release added.

The solicitation agents are BNP Paribas (+44 20 7595 8668 or liability.management@bnpparibas.com), Danske Bank A/S (+45 45 14 32 33 or liabilitymanagement@danskebank.dk) and Merrill Lynch International (+44 20 7996 5420 or DG.LM_EMEA@baml.com). The tabulation agent is Lucid Issuer Services Ltd. (+44 20 7704 0880 or danskebank@lucid-is.com).

Danske Bank is a Copenhagen-based bank.

© 2015 Prospect News.
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