Lloyds, Bank of Scotland give results in offers for 25 series of notes

By Jennifer Chiou

New York, Sept. 26 - Lloyds Banking Group plc subsidiaries Lloyds TSB Bank plc and Bank of Scotland plc announced the close of their tender offers for 25 series of notes.

The first offer covered seven series of dollar-denominated notes. That offer ended at noon ET on Sept. 25 (see separate story for detailed results).

In the second offer, the company said it will repurchase up to the equivalent of £2 billion principal amount of notes denominated in Canadian dollars, euros, pounds sterling or Swiss francs. This offer was made to holders outside the United States. The offer was subsequently increased to the equivalent of £2,173,038,298 principal amount of notes.

The purchase prices were set using a modified Dutch auction procedure. Holders could submit competitive or non-competitive tender instructions.

Holders will also receive accrued interest up to but excluding the settlement date, which is expected to be Sept. 28.

The 18 series of notes covered by the second offer, the pricing and acceptance amounts are noted in the table below. The floating-rate notes due October 2013, 5.625% notes due 23 May 2013 and 3% notes due May 2016 were issued by Bank of Scotland. The remaining notes were issued by Lloyds TSB Bank.

The second offer ended at 11 a.m. ET on Sept. 25. Pricing was set at 9 a.m. ET on Sept. 26.

The offers began on Sept. 18.

For the first offer, the dealer managers were Deutsche Bank Securities Inc. (212 250-7527, 855 287-1922 or US_Liability_Strategies_Team@list.db.com), Deutsche Bank AG, London Branch (44 20 7545 8011 or liability.management@db.com), Lloyds Securities Inc. (212 827-3105, 855 400-6511 or liability.management@lloydsbanking.com), Lloyds TSB Bank (44 20 7158 3981 or liability.management@lloydsbanking.com) and UBS Ltd. (888 719-4210, 203 719-4210, 44 207 567 0525 or OL-Liability-Management@ubs.com). The tender agent was Lucid Issuer Services Ltd. (44 20 7704 0880 or lbg@lucid-is.com).

For the second offer, the dealer managers were Deutsche Bank (416 682-8740 or scott.lampard@db.com in Canada), Lloyds TSB Bank and UBS. Lucid is the lead tender agent, and Citibank, NA, London Branch (44 207 508 3867, 905 212-8906 or exchange.gats@citi.com) was the Canadian tender agent.

Tender offer results

Issue	Outstanding	Purchase price/clearing spread	Acceptance amount
Floating-rate notes due October 2013	€1.25 billion	€1,001.10	€593,068,000
4.57% notes due October 2015	C$350 million	NA	NA
5.28% notes due April 2016	C$500 million	NA	NA
5.625% notes due 23 May 2013	€1.5 billion	Zero bps	€363,634,000
3% notes due May 2016	CHF 250 million	57 bps	CHF 63.12 million
2.5% notes due April 2014	CHF 500 million	20 bps	CHF 94.77 million
6.25% notes due April 2014	€675,856,000	10 bps	€175,342,000
6.375% notes due April 2014	£492,113,000	130 bps	£103.33 million
4.5% notes due September 2014	€996,797,000	31 bps	€132,035,000
2.5% notes due March 2015	CHF 800 million	50 bps	CHF168.44 million
3.375% notes due April 2015	€590 million	67 bps	€60,411,000
3.75% notes due September 2015	€1,003,578,000	72 bps	€101,937,000
6.375% notes due June 2016	€1,704,071,000	78 bps	€200.22 million
4.625% notes due February 2017	€1.5 billion	85 bps	€302,773,000
6.75% notes due October 2018	£225.85 million	220 bps	£39,098,000
5.375% notes due September 2019	€1,230,741,000	114 bps	€85,734,000
7.5% notes due April 2024	£703,885,000	230 bps	£97,929,000
6.5% notes due September 2040	£988 million	225 bps	£108,618,000

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