By Mary-Katherine Stinson
Lexington, Ky., June 13 – Bank of Cyprus Holdings plc priced €220 million of fixed-rate reset perpetual additional tier 1 capital securities (B3) on Tuesday, according to an announcement.
The Regulation S securities priced at par with an initial coupon of 11 7/8%, which will reset on Dec. 21, 2028 and every five years after.
The final pricing was 62.5 basis points tighter than the initial price talk. The new securities are refinancing an issue from a 2018 issue, with the spread at 910 bps for the new securities compared to around 1,260 bps for the previous issue.
The company may redeem the securities during the period from June 21, 2028 to, and including. the first reset date. They will then be callable on each interest payment date.
The global coordinators were BofA Securities Europe SA and Goldman Sachs Bank Europe SE with BNP Paribas and J.P. Morgan SE joining as joint lead managers.
The new issue was oversubscribed by 12x with interest from about 240 institutional investors.
Proceeds will be used by its subsidiary Bank of Cyprus plc for general corporate purposes. The loan is intended to qualify as additional tier 1 capital for the bank.
The new issue is concurrent to a tender offer for €220 million of outstanding capital securities (ISIN: XS1865594870) at 103, and the new issue size was required to be in excess of the amount of securities tendered.
Based in Nicosia, Cyprus, the Bank of Cyprus is a banking and financial services group.
| Issuer: | Bank of Cyprus Holdings plc
|
| Amount: | €220 million
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| Issue: | Fixed-rate reset perpetual additional tier 1 capital securities
|
| Maturity: | Perpetual
|
| Bookrunners: | BofA Securities Europe SA, Goldman Sachs Bank Europe SE (joint global coordinators), BNP Paribas and J.P. Morgan SE
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| Coupon: | 11 7/8% initially; will reset on Dec. 21, 2028 and every five years after
|
| Price: | Par
|
| Yield: | 11 7/8%
|
| Spread: | 910 bps
|
| Call features: | From June 21, 2028 through the first reset date; on each interest payment date
|
| Trade date: | June 13
|
| Ratings: | Moody’s: B3
|
| Price talk: | 972.5 bps
|
| Distribution: | Regulation S
|
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