Anglo Irish starts exchange for three series of floating-rate notes

By Jennifer Chiou

New York, Oct. 22 - Anglo Irish Bank Corp. Ltd. announced the start of exchange offers for its €325,188,000 of floating-rate subordinated notes due 2014, €500 million of callable subordinated floating-rate notes due 2016 and €750 million of dated subordinated floating-rate notes due 2017.

The company is offering new euro-denominated floaters due 2011 along with accrued interest in cash. The new notes will be issued under the company's euro medium-term note program.

The exchange ratio is 0.2.

The new securities will bear interest at Euribor plus 375 basis points and will be issued in minimum denominations of €50,000.

Along with the exchange, the bank is also holding noteholder meetings from Nov. 17 to Nov. 23 to vote on an extraordinary resolution to allow Anglo Irish the right to redeem all notes at an amount equal to €0.01 per €1,000 principal amount after the settlement of the offer.

The offer will end at 11 a.m. ET on Nov. 19 for the notes due 2017 and at 11 a.m. ET on Dec. 20 for the other two notes series. Settlement for the offers is set for Nov. 24 and Dec. 23, respectively.

The company said that it is undertaking the offers and proposed amendments to create additional core tier 1 capital and to strengthen the quality of its credit base.

Of the €750 million of originally issued notes due 2014, Anglo Irish holds €424,812,000 of the securities.

In other news, the company is also going ahead with a $200 million exchange offer for its dollar subordinated notes.

J.P. Morgan Securities Ltd. is the dealer manager (44 20 7777 1333). The exchange agent is Lucid Issuer Services Ltd. (44 20 7704 0880).

Based in Dublin, Anglo Irish Bank operates a chain of banks and financial services centers.

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