Exchange of Preference Shares

RNS Number : 5046L

Lloyds Banking Group PLC

07 May 2010

 



28/10                                                                                                                                                  7 May 2010

EXCHANGE OF PREFERENCE SHARES FOR ORDINARY SHARES

Further to the announcement of 4 May 2010, Lloyds Banking Group plc ("Lloyds Banking Group") announces that it has concluded a limited number of privately negotiated bilateral exchanges to repurchase:

(i)       U.S.$158,646,000 of its 5.92 per cent. Non-Cumulative Fixed to Floating Rate Preference Shares (ISIN: USG5533WAB30/US539439AD11 (ADRs); GB00B3KSBJ07 (preference shares)); and

(ii)      U.S.$135,890,000 of its 6.267 per cent. Non-Cumulative Fixed to Floating Rate Preference Shares (ISIN: US539439AB54/US539439AA71 (ADRs); XS0460002693 (preference shares)),

(together, the "Preference Shares") for cash (the "Cash Amount") on 7 May 2010.

The resulting Cash Amount will be applied today in the payment up and issue to the sellers of such Preference Shares of 216,193,944 ordinary shares of 10 pence each in the share capital of Lloyds Banking Group (the "Ordinary Shares").

Application has been made for the Ordinary Shares to be admitted to listing on the Official List of the UK Listing Authority and to trading on the main market of the London Stock Exchange plc from 7 May 2010.

The repurchases and cancellations of Preference Shares referred to above will leave outstanding:

(i)        213,287 preference shares (representing U.S.$213,287,000 in liquidation preference) of its 5.92 per cent. Non-Cumulative Fixed to Floating Rate Preference Shares outstanding; and

(ii)       397,728 preference shares (representing U.S.$397,728,000 in liquidation preference) of its 6.267 per cent. Non-Cumulative Fixed to Floating Rate Preference Shares.

It is expected that the repurchased Preference Shares will be cancelled on or before 11 May 2010.

- END -

For further information:

Investor Relations

Michael Oliver   [phone]

Director of Investor Relations

Email: [e-mail]

Moira d'Arcy     [phone]

Head of Debt Investor Relations

Email: moira.d'[e-mail]

Media Relations

Sara Evans      [phone]

Media Relations Manager

Email: [e-mail]

This announcement is not an offer for sale of any Ordinary Shares or any other securities of Lloyds Banking Group plc.

This announcement does not constitute a prospectus and no prospectus for the purposes of EU Directive 2003/71/EC and the applicable implementing measures will be published relating to the Ordinary Shares and/or the issue and subscription thereof.

This announcement and the information contained herein do not contain or constitute an offer for sale or the solicitation of an offer to purchase securities in the United States. The securities referred to herein have not been and will not be registered under the US Securities Act of 1933, as amended (the "Securities Act"), and may not be offered or sold in the United States absent registration under the Securities Act or an available exemption from, or in a transaction not subject to, the registration requirements of the Securities Act.

FORWARD LOOKING STATEMENTS

This announcement contains forward looking statements with respect to the business, strategy and plans of the Lloyds Banking Group, its current goals and expectations relating to its future financial condition and performance.  Statements that are not historical facts, including statements about the Group's or the Group management's beliefs and expectations, are forward looking statements.  By their nature, forward looking statements involve risk and uncertainty because they relate to events and depend on circumstances that will occur in the future.  The Group's actual future results may differ materially from the results expressed or implied in these forward looking statements as a result of a variety of factors, including, without limitation, UK domestic and global economic and business conditions, the ability to derive cost savings and other benefits, as well as the ability to mitigate exposures from the acquisition and integration of HBOS, risks concerning borrower credit quality, market related trends and developments, changing demographic trends, changes in customer preferences, changes to regulation, the policies and actions of Governmental and regulatory authorities in the UK or jurisdictions outside the UK, including other European countries and the US, exposure to regulatory scrutiny, legal proceedings or complaints, competition and other factors.  Please refer to the rights issue prospectus issued by Lloyds Banking Group plc on 3 November 2009 for a discussion of such factors together with examples of forward looking statements.  The forward looking statements contained in this announcement are made as at the date of this announcement, and the Group undertakes no obligation to update any of its forward looking statements.

 

END

 

 

LISEAFSKEFPEEAF