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Lloyds gets consents to switch benchmark on notes to Sonia from Libor
By Cady Vishniac
Detroit, Dec. 7 – Lloyds Banking Group plc has received the necessary consents from holders of its £1,494,392,000 7.625% fixed-rate reset additional tier 1 perpetual subordinated contingent convertible securities callable 2023 and £750 million 7.875% fixed-rate reset additional tier 1 perpetual subordinated contingent convertible securities callable 2029 to switch the benchmark on the notes to Sonia from Libor, according to a press release.
For the 2023 notes, 100% of noteholders present at the consent solicitation meeting voted for the change, with holders representing 75.25% of the outstanding principal amount attending the meeting. For the 2029 notes, 99.42% of holders representing 71.13% of the outstanding notes voted for the change.
The 2023 notes meeting was held Dec. 7 at 5 a.m., with the 2029 notes meeting following immediately. The meetings each required a quorum of noteholders representing 25% of the aggregate principal amount of the notes.
As previously reported, meetings on Nov. 23 had required a quorum of holders representing 75% of the outstanding principal on the notes. Noteholders representing the 2023 notes appeared to have a quorum and voted for the change, but it was later discovered that not all of the voters had met eligibility requirements. The meeting was adjourned. The 2029 noteholders also voted in favor of the change, but these noteholders had not achieved a quorum of 75%, so the meeting was likewise adjourned.
Previous meetings on Nov. 5 and Oct. 21 were also adjourned due to a lack of quorum.
The continuation of Libor on the current basis will not be guaranteed after 2021, and regulators have urged market participants to take active steps to implement the transition to Sonia and other risk-free rates ahead of this deadline.
Lucid Issuer Services Ltd. (+44 20 7704 0880, lloydsbank@lucid-is.com) is the tabulation agent.
Lloyds is a bank and financial services group based in London.
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