Perpetual Bonds – Results of Consent Solicitation

Bank of Ireland(Governor&Co)

04 August 2023

 

NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION IN OR INTO OR TO ANY PERSON LOCATED OR RESIDENT IN THE UNITED STATES, ITS TERRITORIES AND POSSESSIONS (INCLUDING PUERTO RICO, THE U.S. VIRGIN ISLANDS, GUAM, AMERICAN SAMOA, WAKE ISLAND AND THE NORTHERN MARIANA ISLANDS, ANY STATE OF THE UNITED STATES AND THE DISTRICT OF COLUMBIA) (THE "UNITED STATES")  OR TO ANY U.S. PERSON (AS DEFINED IN REGULATION S UNDER THE UNITED STATES SECURITIES ACT OF 1933 AS AMENDED) (THE "SECURITIES ACT") AND FOR DISTRIBUTION ONLY OUTSIDE THE REPUBLIC OF ITALY. NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION IN OR INTO, OR TO ANY PERSON LOCATED OR RESIDENT IN, ANY OTHER JURISDICTION WHERE IT IS UNLAWFUL TO RELEASE, PUBLISH OR DISTRIBUTE THIS DOCUMENT.

The Governor and Company of the Bank of Ireland (acting through its United Kingdom branch) announces final results of the tender offer and consent solicitation relating to the £75,000,000 13^3/8 per cent. Unsecured Perpetual Subordinated Bonds (ISIN: GB0000510312)

4 August 2023

On 21 June 2023, The Governor and Company of the Bank of Ireland (acting through its United Kingdom branch) (the "Offeror" or "BOI") launched an invitation to holders of its £75,000,000 13^3/8 per cent. Unsecured Perpetual Subordinated Bonds (ISIN: GB0000510312) (the "Bonds") to (a) tender any and all of their Bonds for purchase by Elgin Securities DAC (the "Purchaser") for cash (the "Tender Offer"); and (b) approve the modification of the terms and conditions of the Bonds to provide for BOI to redeem all, but not some only, of the outstanding Bonds on the Redemption Date (the "Consent Solicitation" and, together with the Tender Offer, the "Offers").

The Offers were made on the terms and subject to the conditions set out in the offer memorandum dated 21 June 2023 (the "Offer Memorandum") and were subject to the offer and distribution restrictions set out in the Offer Memorandum.

Capitalised terms not otherwise defined in this announcement have the same meaning as assigned to them in the Offer Memorandum.

Results of the Consent Solicitation

The Meeting of the holders of the Bonds (the "Bondholders") was held today as scheduled. The Meeting was quorate and the Extraordinary Resolution was duly passed by the Bondholders, with 88.65 per cent. of the votes cast being in favour. Accordingly, the Third Supplemental Trust Deed relating to the Bonds was executed today, and the modifications referred to in the Extraordinary Resolution will be effective from today.

BOI also announces that it will redeem the outstanding Bonds pursuant to the Issuer Call on the Redemption Date. The Redemption Date in respect of the Bonds is expected to be 25 August 2023.

A summary of the total amount payable to Bondholders upon the exercise of the Issuer Call appears below:  

DID YOU VOTE? (including by tendering your Bonds in the Tender Offer)	REDEMPTION AMOUNT		PAYMENT IN LIEU OF ACCRUED INTEREST*		REDEMPTION CONSIDERATION		VOTING FEE**		REDEMPTION CONSIDERATION + VOTING FEE
	(expressed as a percentage)	(expressed as an amount)	(expressed as a percentage)	(expressed as an amount)	(expressed as a percentage)	(expressed as an amount)	(expressed as a percentage)	(expressed as an amount)	(expressed as a percentage)	(expressed as an amount)
YES	188.00%	£1,880.00 for each £1,000 in principal amount of the Bonds	4.031%	£40.31 for each £1,000 in principal amount of the Bonds	192.031%	£ 1,920.31 for each £1,000 in principal amount of the Bonds	2.00%	£20.00 for each £1,000 in principal amount of the Bonds	194.031%	£1,940.31 for each £1,000 in principal amount of the Bonds
NO							0%	£0 for each £1,000 in principal amount of the Bonds	192.031%	£1,920.31 for each £1,000 in principal amount of the Bonds

*   The amount of the payment in lieu of accrued interest is the accrued but unpaid interest up to (but excluding) the Redemption Date 

** The Voting Fee is only payable to those Bondholders who had submitted valid Tender Instructions ('Option 1') or Voting Only Instructions specifying 'Option 2' by the applicable Tender Deadline or Consent Deadline, as the case may be.  

Tender Offer

As the Extraordinary Resolution was passed at the Meeting, the Purchaser will not purchase any Bonds pursuant to the Tender Offer.

FURTHER INFORMATION

BOI and the Purchaser have retained Jefferies International Limited, J&E Davy Unlimited Company, Lloyds Bank Corporate Markets plc and UBS AG London Branch to act as dealer managers with respect to Institutional Investors only for the Offers (the "Dealer Managers"), Link Market Services Limited to act as receiving agent and tabulation agent for the Offers (the "Receiving Agent" and the "Registrar") and D.F. King Ltd to act as retail information agent (the "Retail Information Agent").

A "Retail Investor" means a Bondholder who is not an Institutional Investor (as defined below). Any Bondholder who is an individual (rather than a company or other organisation) will be a Retail Investor. Any Bondholder that is a company or other organisation and is not sure whether they are a Retail Investor or an Institutional Investor may contact the Retail Information Agent for further information, using the contact details below. 

An "Institutional Investor" means a Bondholder that is:

(i)         an "eligible counterparty" or a "professional client", each as defined in Directive 2014/65/EU (as amended, "MiFID II"); or

(ii)      an "eligible counterparty" as defined in the FCA Handbook Conduct of Business Sourcebook or a "professional client" as defined in Regulation (EU) No 600/2014 as it forms part of United Kingdom domestic law by virtue of the European Union (Withdrawal) Act 2018 ("UK MiFIR").

Retail Investors

(1)        Retail Investors who have questions or require technical assistance in connection with the Offers should contact the Receiving Agent using the following contact details:

Link Market Services Limited Telephone:     [phone]                           (if calling from the UK)[1] Telephone:    [phone]                     (if calling from outside the UK)1

(2)          Retail Investors who have any other questions regarding the Offers should contact the Retail Information Agent using the following contact details:

D.F. King Ltd Telephone:     [phone]                           (if calling from the UK)[2] Telephone:   [phone]                    (if calling from outside the UK)2

Institutional Investors

Institutional Investors who have questions or require technical assistance in connection with the Offers should contact the Receiving Agent using the above contact details. Institutional Investors who have any other questions regarding the Offers should contact the Dealer Managers using the contact details set out below.

DEALER MANAGERS AND SOLICITATION AGENTS
J&E Davy Unlimited Company Tel: [phone] Email: [e-mail]	Jefferies International Limited Tel: [phone] Email: [e-mail] Attn: Liability Management
Lloyds Bank Corporate Markets plc Tel: [phone] / 1719 Email: [e-mail] Attn: Liability Management	UBS AG London Branch Tel: [phone] Email: [e-mail] Attn: Liability Management

Nominees, Banks, Brokers, Custodians and Institutional Investors who have procedural questions please contact:

D.F. King Ltd

[phone][3]

Email: [e-mail]

DISCLAIMER This announcement must be read in conjunction with the announcement relating to the Offers published by the Offeror on 21 June 2023 (the "Launch Announcement"), the announcement relating to the interim results following the Institutional Investor Tender Deadline and Institutional Investor Consent Deadline on 30 June 2023 (the "Interim Institutional Investors Results Announcement"), the announcement extending the Offers for Institutional Investors on 25 July 2023 (the "Extension Announcement"), the announcement relating to the interim results following the Retail Investor Tender Deadline and Retail Investor Consent Deadline on 3 August 2023 (the "Interim Retail Investors Results Announcement"), the Offer Memorandum and any other announcements published in connection with the Offers.  This announcement, the Launch Announcement, the Interim Institutional Investors Results Announcement, the Extension Announcement, the Interim Retail Investors Results Announcement and the Offer Memorandum contain important information which should be read carefully before any decision is made with respect to the Offers.  If you are in any doubt as to the contents of this announcement, the Launch Announcement, the Interim Institutional Investors Results Announcement, the Extension Announcement, the Interim Retail Investors Results Announcement or the Offer Memorandum or the action you should take, you are recommended to seek your own financial and legal advice, including as to any tax consequences, immediately from your broker, solicitor, accountant or other independent financial or legal adviser.

This announcement and the Offer Memorandum contain certain forward-looking statements that reflect BOI's intent, beliefs or current expectations about the future and can be recognized by the use of words such as "expects," "will,", "anticipate," or words of similar meaning. These forward-looking statements are not guarantees of any future performance and are necessarily estimates reflecting the best judgement of the management of BOI and involve a number of risks and uncertainties that could cause actual results to differ materially from those suggested by the forward-looking statements. As a consequence, these forward-looking statements should be considered in light of various important factors that could cause actual results to differ materially from estimates or projections contained in the forward-looking statements, which include, without limitation, the risk factors set forth in the Offer Memorandum. BOI cannot guarantee that any forward-looking statement will be realised, although they believe they have been prudent in their respective plans and assumptions. Achievement of future results is subject to risks, uncertainties and assumptions that may prove to be inaccurate. Should known or unknown risks or uncertainties materialise, or should underlying assumptions prove inaccurate, actual results could vary materially from those anticipated, estimated or projected. BOI undertakes no obligation to update publicly or release any revisions to these forward-looking statements to reflect events or circumstances or to reflect the occurrence of unanticipated events, except as required by applicable law.

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[1] Lines are open from 8.30 a.m. to 5.30 p.m. (UK time) Monday to Friday (excluding public holidays in England and Wales). If calling from within the UK, please call the Freephone number 0800 029 4524. If calling from outside the UK, please call [phone] (calls using this number from within the UK will be charged at the standard geographic rate and will vary by provider). Calls from outside the UK will be charged at the applicable international rate. Please note that calls may be monitored for security and training purposes. The helpline cannot provide advice on the merits of the Offers nor give any financial, legal or tax advice.

[2] Lines are open from 9.00 a.m. to 5.30 p.m. (UK time) Monday to Friday (excluding public holidays in England and Wales). Calls to Freephone numbers will vary by provider. If calling from within the UK, please call the Freephone number 0800 029 4528. If calling from outside the UK, please call [phone] (calls using this number from within the UK will be charged at the standard geographic rate and will vary by provider). Calls from outside the UK will be charged at the applicable international rate. Please note that calls may be monitored for security and training purposes. The helpline cannot provide advice on the merits of the Offers nor give any financial, legal or tax advice.

[3] Lines are open from 9.00 a.m. to 5.30 p.m. (UK time) Monday to Friday (excluding public holidays in England and Wales). Calls from within the UK are charged at the standard geographic rate and will vary by provider. Calls from outside the UK will be charged at the applicable international rate. Please note that calls may be monitored for security and training purposes. The helpline cannot provide advice on the merits of the Offers nor give any financial, legal or tax advice.

 

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