Chicago, Nov. 16 – Metro Bank Holdings plc is issuing two fixed-rate reset callable notes as part of a debt refinancing, according to a prospectus.
The transaction includes £525 million of 12% fixed-rate reset callable notes due 2029. The notes are considered MREL capital.
Of that £525 million total, £350 million are the result of an exchange with holders of existing tier 2 notes (//CCC+). The other £175 million is being issued for cash (at par).
The initial 12% rate will reset on April 30, 2028. The margin was not included.
The exchange notes constitute a one-to-one exchange for noteholders of the £350 million fixed-rate reset senior non-preferred notes due 2025 (ISIN: XS2063492396).
New £150 million 14% fixed-rate reset callable subordinated notes due 2034 also constitute an exchange with existing noteholders. The notes are considered tier 2 capital.
The initial 14% rate will reset on April 30, 2029.
Holders are exchanging an existing issue of £250 million fixed-rate reset callable subordinated notes due 2028 (ISIN: XS1844097987) for the new tier 2 instruments. They are receiving £600 of new notes for each £1,000 note exchange.
The exchange is bolstering Metro Bank’s CET1 capital by £100 million.
Proceeds will be used to increase the capital resources of the group and to support the growth of the group.
The exchange helped the bank conform with regulatory capital requirements after skirting non-compliance.
London-based Metro Bank is a retail and commercial bank.
| Issuer: | Metro Bank Holdings plc
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| Amount: | £675 million
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| Trustee: | Law Debenture Trust Corp. plc
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| Counsel to issuer: | Linklaters LLP
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| Trade date: | Nov. 16
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| Settlement date: | Nov. 30
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| Distribution: | Rule 144A and Regulation S
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| 2029 notes
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| Amount: | £525 million
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| Issue: | Fixed-rate reset callable notes
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| Maturity: | April 30, 2029
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| Coupon: | 12% initial rate; resets on April 30, 2028
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| Price: | Par
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| Yield: | 12%
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| Call features: | At par on April 30, 2028
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| ISINs: | XS2720120596, XS2720120679
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| 2034 notes
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| Amount: | £150 million
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| Issue: | Fixed-rate reset callable subordinated notes due 2034
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| Maturity: | April 30, 2034
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| Coupon: | 14% initial rate; resets on April 30, 2029
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| Call features: | At par on April 30, 2029
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| ISINs: | XS2720121131, XS2720120919
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