Ulster Bank accepts all tendered sterling floaters, calls remainder

By Marisa Wong

Los Angeles, Nov. 16 – Ulster Bank Ireland DAC issued a notice on Wednesday of the results of its tender offer and the meeting for its £5 million floating-rate subordinated bonds (ISIN: IE0004325282), of which £1,148,000 is outstanding.

Ulster Bank had launched separate cash tender offers for three series of subordinated bonds on Sept. 13. The offers for two of the series, the Irish pound-denominated 11.375% subordinated bonds (ISIN: IE0004325399) and the sterling-denominated 11.75% subordinated bonds (ISIN: IE0004325514), expired on Oct. 23.

The expiration date for the third series, the sterling-denominated floating-rate bonds, was extended to 8 a.m. ET on Nov. 13.

As of the extended deadline, holders had tendered £301,000 of the floating-rate bonds. The issuer has decided to accept all of the tendered bonds for purchase. Settlement will be on Nov. 22.

The bank will purchase the sterling floaters at 112.5, plus accrued interest, as previously announced.

In conjunction with the tender offers, the issuer also invited bondholders to consent to some modifications to the terms and conditions of the bonds.

Bondholder meetings were held on Oct. 25. In the case of the 11.375% bonds and the 11.75% bonds, the necessary consents were obtained. On the other hand, the meeting for the sterling floaters was adjourned to Nov. 15 due to a lack of a quorum at the original meeting.

The quorum and voting thresholds were met at the adjourned meeting, so the resolution passed and an amendment deed was subsequently executed.

The amendment provides for the redemption of any bonds that are not purchased under the relevant tender offer at a redemption price equal to the purchase price under the tender offer.

As a result, the issuer will redeem all of the sterling floating-rate bonds not purchased in the tender offer on Nov. 22.

NatWest Markets plc (+44 20 7678 5222, +33 1 78 95 18 59, NWMLiabilityManagement@natwestmarkets.com) was the dealer manager for the offers.

The registrar is Computershare Investor Services (Ireland) Ltd. (+353 1447 5468).

The issuer previously said it is in the process of a phased withdrawal from Ireland and, therefore, implemented the tender offer and the proposals to retire its legacy subordinated liabilities. The bonds are no longer required to meet the bank’s capital requirements and have ceased to be eligible for inclusion in its tier 2 capital and own funds.

The issuer is a Dublin-based bank.

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