Lloyds Banking gets $760.28 million of tenders for four notes series in exchange offer by early submission deadline

By Susanna Moon

Chicago, June 14 - Lloyds Banking Group plc said LBG Capital No. 2 plc received tenders of $760.28 million notes by the early submission deadline at 5 p.m. ET on June 11.

The company expects to announce the conversion price, volume-weighted average price, the sterling exchange rate and the exchange ratios at 12:30 p.m. ET on June 25.

The breakdown for the four series of tendered notes is as follows:

• $392.5 million of Lloyds TSB Bank plc's $750 million primary capital undated floating-rate notes, series 1;

• $143.69 million of Lloyds TSB's $500 million primary capital undated floaters, series 2;

• $166.85 million of Lloyds TSB's $600 million primary capital undated floaters, series 3; and

• $57.24 million of Bank of Scotland plc's $250 million undated floating-rate primary capital notes.

On May 28 Lloyds Capital No. 2 announced the start of an exchange offer in which it will issue up to 750 million of Lloyds shares for four series of its notes.

Listed in priority acceptance order, the securities eligible for exchange are:

• Lloyds TSB Bank's $659.85 million of primary capital undated floaters, series 1;

• Lloyds TSB Bank plc's $423.81 million of primary capital undated floaters, series 2;

• Lloyds TSB Bank's $526.15 million of primary capital undated floaters, series 3; and

• Bank of Scotland plc's $237.2 million of undated floaters.

For each $10,000 of tendered notes, holders will receive $6,000 worth of common stock, including $500 of shares accounting for the early submission premium to be issued to those who tender prior to 5 p.m. ET on June 11.

The offer will wrap on 11:59 p.m. ET on June 25.

To determine the number of shares to be issued for each notes series, the company will calculate the exchange amount divided by the conversion price, which will be the VWAP times the sterling exchange rate. The VWAP will be determined during the trading days from June 14 through June 25.

The minimum submission amount is $100,000. Settlement is slated for June 29.

In the United States, the dealer managers are Banc of America Securities LLC (888 292-0070 or call collect 646 855-3401) and UBS Investment Bank (888 719-4210 or call collect 203 719-4210).

Outside the States, the dealer managers are Merrill Lynch International (44 20 7995 3715 or fax 44 20 7995 8582) and UBS Investment Bank (44 20 7567 0525 or fax 44 20 7568 5332).

The exchange agent is Lucid Issuer Services Ltd. (44 20 7704 0880).

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.