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Virgin Money holders consent to adjust rate-setting mechanism for four series
Chicago, March 8 – Virgin Money UK plc received requisite consents from holders of four series of notes to adjust the rate-setting mechanisms to the Sterling Overnight Index Average from Libor when necessary, according to a regulatory notice.
As previously reported, the modification of terms and conditions of the relevant series is upon the occurrence of an index cessation event of six-month Libor, and the relevant Libor linked mid-swap rate is replaced by Sonia.
Additionally, on March 5, the United Kingdom Financial Conduct Authority published an announcement regarding the future cessation and loss of representativeness of the Libor benchmarks. The International Swaps and Derivatives Association, Inc. confirmed that the announcement constitutes an index cessation event.
As a result, the fallback spread adjustment published by Bloomberg is fixed as of March 5 for all Libor settings, including six-month Libor.
The consent solicitations, for which no consent fees are being paid, were due by 11 a.m. ET on March 3, and the issuer held separate noteholder meetings for approval of an extraordinary resolution by teleconference on March 8.
The notes include: £300 million 3.125% fixed-to-floating rate callable senior notes due 2025 (ISIN: XS16371247410); £350 million 3.375% fixed-rate reset callable senior notes due April 24, 2026 (ISIN: XS1813150247); £450 million 8% fixed-rate reset perpetual subordinated contingent convertible notes (ISIN: 1346644799); and £230 million fixed-rate resettable additional Tier 1 securities, with an 8.75% rate (ISIN: 1516312409).
Citigroup NA London Branch is the principal paying agent for the consent solicitations, NatWest Markets plc (+44 20 7678 5222, liabilitymanagement@natwestmarkets.com) is the solicitation agent, and Lucid Issuer Services Ltd. (+44 20 7704 0880, virginmoney@lucid-is.com) is the tabulation agent.
Virgin Money plc is a bank and financial services company based in Newcastle, England.
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