A datapoint in the burdensharing for (Irish bank) bondholders theme.
On Friday, holders of Anglo Irish subordinated debt due in 2016 voted on an amendment needed for the bailed-out bank’s discounted exchange offer. The change to terms passed, though a group of 2016 holders still say they plan to block the deal next month.
However, on Monday their 2017-cousins (and the biggest Anglo Irish sub-debt group) revealed their own exchange votes — a resounding yes.
And also (automatically) approved that ‘sweeper’ clause that came with it.
Fresh off the RNS:
The Bank has also invited the Holders of the 2017 Notes (on the terms and subject to the conditions set out in the form of notice and extraordinary resolution at Annex 2 to the Consent and Exchange Offer Memorandum) to approve the modification of the terms and conditions of the 2017 Notes to provide for the insertion of a new condition giving the Bank the right to redeem all, but not some only, of the 2017 Notes at an amount equal to €0.01 per €1,000 in principal amount of such 2017 Notes, at any time after the Settlement Date upon giving not less than 2 nor more than 7 Business Days’ notice to the Holders of the 2017 Notes (the 2017 Notes Proposal). In accordance with the terms of the 2017 Notes Exchange Offer, by electing to offer their Notes for exchange, Holders have also appointed the Exchange and Tabulation Agent (or its agent) as their proxy to vote in favour of the Extraordinary Resolution in respect of the 2017 Notes Proposal.
Next up: the 2014s and the troublesome 2016s, both with meetings on December 20.
And even if the 2016 investors refuse the exchange offer, we’re not sure what they’d be pushing for instead, exactly. In fact, we bet after the bailout announced over the weekend, the Irish government is probably thinking ‘more burdensharing’ at this point — or even less than that one euro cent per €1,000 worth of principal.
Double-ouch.
Related links:
Anglo Irish bondholders agree new terms - FT
Anglo Irish bondholders blink - FT Alphaville
Anglo Irish’s burden-sharing template - FT Alphaville