Re: DIA Dow Jones 30 (ETF)
Publicado: Lun Dic 14, 2009 11:53 am
Lloyds Banking GBP13.5B Rights Issue 95.3% SubscribedLast update: 12/14/2009 2:30:04 AM
By Digby Larner
Of DOW JONES NEWSWIRES
Lloyds Banking Group PLC (LYG) said Monday that 95.3% of its EUR13.5 billion rights issue had been subscribed by shareholders, securing a key element in a GBP22.5 billion recapitalization plan intended to help the U.K. bank side-step an expensive government-backed asset insurance scheme. The biggest-ever rights issue closed Friday and offered 1.34 rights for every existing share at 37 pence each. Lloyds Bank shares closed at 56 pence Friday. Joint global co-ordinators BofA Merrill Lynch, UBS Ltd. and Citigroup Global Markets U.K. Equity Limited will try to place the remaining shares. Chief Executive Officer Eric Daniels said: "Our focus remains on delivering on our plans to become the U.K.'s leading financial services company, which we believe will result in significant benefits for all our shareholders." The new shares are due to start trading later in the day. The deeply discounted offer underscores efforts by Lloyds to avoid the insurance plan launched by the U.K. government in March to help banks get out of the financial crisis. Lloyds has been 43% government-owned since it ran into difficulties following its acquisition of troubled U.K. lender HBOS. If it had participated in the government's asset protection plan, Lloyds would have seen its government ownership increase to over 60%. Under the so-called Asset Protection Scheme, the government would have insured roughly GBP260 billion in risky assets for a fee of GBP15.6 billion, which would be paid in the form of nonvoting shares. The bank would also have been responsible for a first loss of GBP25 billion. Besides the GBP13.5 billion rights issue, the bank has raised GBP8.5 billion by allowing holders to exchange their securities to new debt, most of which can convert to equity in times of stress. The debt is in the form of contingent-convertible bonds, or CoCos, and will be converted into shares if the company's core Tier 1 ratio falls to below 5%. -By Digby Larner, Dow Jones Newswires; +33 1 4017 1748; digby.larner@dowjones.com (END) Dow Jones NewswiresDecember 14, 2009 02:30 ET (07:30 GMT)
By Digby Larner
Of DOW JONES NEWSWIRES
Lloyds Banking Group PLC (LYG) said Monday that 95.3% of its EUR13.5 billion rights issue had been subscribed by shareholders, securing a key element in a GBP22.5 billion recapitalization plan intended to help the U.K. bank side-step an expensive government-backed asset insurance scheme. The biggest-ever rights issue closed Friday and offered 1.34 rights for every existing share at 37 pence each. Lloyds Bank shares closed at 56 pence Friday. Joint global co-ordinators BofA Merrill Lynch, UBS Ltd. and Citigroup Global Markets U.K. Equity Limited will try to place the remaining shares. Chief Executive Officer Eric Daniels said: "Our focus remains on delivering on our plans to become the U.K.'s leading financial services company, which we believe will result in significant benefits for all our shareholders." The new shares are due to start trading later in the day. The deeply discounted offer underscores efforts by Lloyds to avoid the insurance plan launched by the U.K. government in March to help banks get out of the financial crisis. Lloyds has been 43% government-owned since it ran into difficulties following its acquisition of troubled U.K. lender HBOS. If it had participated in the government's asset protection plan, Lloyds would have seen its government ownership increase to over 60%. Under the so-called Asset Protection Scheme, the government would have insured roughly GBP260 billion in risky assets for a fee of GBP15.6 billion, which would be paid in the form of nonvoting shares. The bank would also have been responsible for a first loss of GBP25 billion. Besides the GBP13.5 billion rights issue, the bank has raised GBP8.5 billion by allowing holders to exchange their securities to new debt, most of which can convert to equity in times of stress. The debt is in the form of contingent-convertible bonds, or CoCos, and will be converted into shares if the company's core Tier 1 ratio falls to below 5%. -By Digby Larner, Dow Jones Newswires; +33 1 4017 1748; digby.larner@dowjones.com (END) Dow Jones NewswiresDecember 14, 2009 02:30 ET (07:30 GMT)
