By Susanna Moon
Chicago, May 18 – OneSavings Bank plc priced £60 million of 9.125% resetting perpetual subordinated contingent convertible securities at par.
The contingent convertibles qualify as additional tier 1 capital under Capital Requirements Directive IV and the Capital Requirements Regulation, according to a company announcement.
The securities will fully convert into ordinary shares of the bank if its CET1 capital ratio falls below 7%, the release noted.
Interest will be 9.125% until May 25, 2022, the first reset date and each subsequent five-year period, when it will reset at a rate equal to 835.9 basis points over the five-year semiannual mid-swap rate for that period.
Proceeds of will be used to “further optimize the issuer’s capital stack to continue to support the general corporate purposes of the group, including the growth of the group’s business,” the release noted.
Barclays Bank plc is the bookrunner and structuring adviser.
OneSavings is a commercial bank based in Chatham, England.
| Issuer: | OneSavings Bank plc
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| Issue: | Resetting subordinated contingent convertible securities
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| Amount: | £60 million
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| Maturity: | Perpetuals
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| Coupon: | 9.125% for first five years, resetting on May 25, 2022 and every five years after that, to rate equal to 835.9 bps over five-year semiannual mid-swap rate
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| Price: | Par
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| Bookrunner: | Barclays Bank plc
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| Pricing date: | May 18
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| Settlement date: | May 25
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