TierOne opts to defer interest on trust preferreds

By Jennifer Chiou

New York, Nov. 24 - TierOne Corp. notified trustee Wilmington Trust Co. that it has elected to defer interest payments on its floating-rate junior subordinated deferrable debt securities due 2034 relating to the trust preferred securities TierOne Capital Trust I, according to an 8-K filing with the Securities and Exchange Commission.

As permitted under the indenture, the company has the right to extend the interest payment period at any time for up to 20 consecutive quarterly periods.

Accordingly, TierOne noted that the deferral does not constitute an event of default.

Upon expiration of the deferral period, all accrued interest will be due and payable at the same contractual rate that would have been payable were it not for the extension.

TierOne Bank is a federally chartered savings bank located in Lincoln, Neb.

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