Lloyds Banking accepts £48.18 million tenders of preference shares

By Marisa Wong

Los Angeles, Nov. 22 – Lloyds Banking Group plc announced results of its Nov. 10 cash tender offers for any and all of three series of sterling-denominated preference shares as of the deadline applicable for institutional and retail holders.

As of the general expiration time, 8 a.m. ET on Nov. 19, holders had tendered the following:

• £3,691,321 of the £198,065,600 6.475% non-cumulative preference shares (ISIN: GB00B3KSB568), with £56,472,211 liquidation preference outstanding, at a purchase price of 112.05, leaving £52,780,890 outstanding;

• £37,319,867 of the £300 million 9.25% non-cumulative irredeemable preference shares (ISIN: GB00B3KS9W93), with £299,987,729 liquidation preference outstanding, at a purchase price of 167.25, leaving £262,667,862 outstanding; and

• £7,168,493 of the £100 million 9.75% non-cumulative irredeemable preference shares (ISIN: GB00B3KSB238), with £55,740,886 liquidation preference outstanding, at a purchase price of 174.2, leaving £48,572,393 outstanding.

Lloyds will accept for purchase all of the preference shares tendered by the general expiration deadline, according to a Monday press release.

Settlement is slated for Nov. 30.

There is also an expiration deadline at 8 a.m. ET on Dec. 9 for retail holders only. The offeror will announce on Dec. 10 its decision on whether to accept tenders submitted after the general expiration deadline and prior to the retail-only deadline. If those tenders are accepted, settlement will occur on Dec. 15.

According to Monday’s announcement, the expiration deadline for retail holders who hold 6.475% preference shares through the LBGSA nominee is 8 a.m. ET on Dec. 6.

Lucid Issuer Services (+44 20 7704 0880, lbg@lucid-is.com, https://deals.lucid-is.com/lbg-us) is information agent for the sterling tender offers, and Equiniti Ltd. is receiving agent.

Credit Suisse International (+44 20 7883 8763, liability.management@credit-suisse.com), Lloyds Bank Corporate Markets plc (+44 20 7158 1726 / 1719, liability.management@lloydsbanking.com) and Merrill Lynch International (+44 20 7996 5420, DG.LM-EMEA@bofa.com) are dealer managers.

As announced on Nov. 10, Lloyds concurrently launched an offering to exchange new notes and cash for five series of dollar-denominated securities.

That exchange offer is still ongoing and will end on Dec. 9.

The retail and commercial bank is based in Edinburgh, U.K., with operational headquarters in London.

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