Anglo Irish gets tenders for €690.22 million of floaters due 2017

By Angela McDaniels

Tacoma, Wash., Nov. 22 - Anglo Irish Bank Corp. Ltd. said it received tenders for €690.22 million principal amount, or 92.03%, of its €750 million of dated subordinated floating-rate notes due 2017.

Exchange offers for the notes and the bank's €325,188,000 of floating-rate subordinated notes due 2014 and €500 million of callable subordinated floating-rate notes due 2016 began on Oct. 21.

The offer for the 2017 notes ended at 11 a.m. ET on Nov. 19, and the offer for the other two series of notes will end at 11 a.m. ET on Dec. 20.

The bank is offering new euro-denominated floaters due 2011 and accrued interest in cash.

The exchange ratio is 0.2, and the new notes will be issued in minimum denominations of €50,000.

Holders who do not tender enough notes to meet the minimum denomination condition will instead receive a cash amount equal to the value of the notes they would have received had their notes been exchanged.

The settlement date for the 2017 notes is Nov. 24. The bank will issue €136,804,600 principal amount of new notes and pay €1,239,400 in cash, not including interest.

The new notes will bear interest at Euribor plus 375 basis points.

The bank is also seeking noteholder consent to redeem the notes at an amount equal to €0.01 per €1,000 principal amount after the settlement of the exchange offers. By tendering their notes, holders have also appointed the exchange and tabulation agent as their proxy to vote in favor of the extraordinary resolution at a noteholder meeting.

The meeting of the 2017 noteholders will be held on Nov. 23. The first meeting of the 2016 noteholders was scheduled for Nov. 19. The second meeting of the 2016 and the meeting of the 2014 noteholders will be held Dec. 22.

The bank 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 principal amount.

J.P. Morgan Securities Ltd. (44 20 7777 1333) is the dealer manager. 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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