Lloyds Banking Group - Consent Solicitation Announcement
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LLOYDS BANKING GROUP PLC
Legal Entity Identifier (LEI: H7FNTJ4851HG0EXQ1Z70)
to the holders of the
The Issuer has today given a Notice of Meetings in respect of the Securities for the purpose of soliciting consent from the Securityholders to the modification of the terms and conditions (the "Conditions") of the relevant Series and consequential or related amendments to the transaction documents for the relevant Series of Securities such that (i) the Reset Reference Rate (as defined in the relevant Conditions) ceases to be a London Inter Bank Offered Rate ("LIBOR") linked mid-swap rate and becomes a Sterling Overnight Index Average ("SONIA") linked mid-swap rate; (ii) an adjustment (the "Reset Reference Rate Adjustment") is made to reflect the economic difference between the LIBOR and SONIA rates; and (iii) the Margin (as defined in the relevant Conditions) applicable to each Series of Securities remains unaltered; (iv) the fallbacks relating to the Reset Reference Rate are amended; and (v) new fallbacks are included in case a Benchmark Event (as defined in the Consent Solicitation Memorandum) occurs with respect to the Reset Rate of Interest, as proposed by the Issuer for approval by a separate extraordinary resolution of the holders of each such Series (each an "Extraordinary Resolution"), all as further described in the consent solicitation memorandum dated
In light of the ongoing developments in relation to coronavirus (COVID-19), and current guidance issued by the
1. Notice of meetingS in respect of the SECURITIES
The Notice of Meeting will be available for viewing at the Issuer's website:
2. Indicative timetable for the consent solicitation
Set out below is an indicative timetable showing one possible outcome for the timing of the Consent Solicitations, which will depend, among other things, on timely receipt (and non revocation) of instructions, the rights of the Issuer (where applicable) to extend, waive any condition of, amend and/or terminate either Consent Solicitation (other than the terms of the relevant Extraordinary Resolution) as described in the Consent Solicitation Memorandum and the passing of each Extraordinary Resolution at the initial Meeting for the relevant Series. Accordingly, the actual timetable may differ significantly from the timetable below.
(At least 21 clear days before the Meeting)
Notice of the Meetings to be delivered to the Clearing Systems.
Release of Notice through the regulatory news service of the London Stock Exchange.
Copies of the Consent Solicitation Memorandum to be available from the Tabulation Agent and the Securityholder Information (as defined in the Notice) to be available for inspection, as indicated, at the specified office of the Principal Paying and Conversion Agent and on the website of the Issuer (https://www.lloydsbankinggroup.com/investors/fixed-income-investors/consent-solicitation ) (the "Issuer's Website"). From this date, Securityholders may arrange for Securities held by Clearstream, Luxembourg and/or Euroclear in their accounts to be blocked in such accounts and held to the order and under the control of the Principal Paying and Conversion Agent in order to obtain a form of proxy or give valid Consent Instructions or Ineligible Holder Instructions, to the Tabulation Agent.
(At least 48 hours before the Meeting)
Final time by which Securityholders have arranged for:
(i) obtaining a form of proxy from the Principal Paying and Conversion Agent in order to attend (via teleconference) and vote at the relevant Meeting; or
(ii) receipt by the Tabulation Agent of valid Consent Instructions or Ineligible Holder Instructions in accordance with the procedures of Clearstream, Luxembourg and/or Euroclear.
Final time by which Securityholders have given notice to the Tabulation Agent (via the relevant Clearing Systems) of any intended revocation of, or amendment to, Consent Instructions or Ineligible Holder Instructions previously given by them.
SECURITYHOLDERS' MEETING HELD
The initial Meeting in respect of:
(i) the PNC9 Securities will commence at
(ii) the PNC15 Securities will commence at
If the relevant Extraordinary Resolutions are passed at the relevant Meeting:
As soon as reasonably practicable after the Meetings
Announcement of the results of the Meetings and, if the relevant Extraordinary Resolution is passed, satisfaction (or not) of the Eligibility Condition.
Delivery of notice of such results to Euroclear and Clearstream, Luxembourg for communication to their account holders and an announcement released on the regulatory news service of the London Stock Exchange.
At or around
(the "Pricing Date")
Pricing Time and Pricing Date
Solicitation Agent to calculate the relevant Reset Reference Rate Adjustment in respect of each Series.
A pricing announcement will be delivered through the Clearing Systems and released through the regulatory news service of the London Stock Exchange as soon as practicable following the Pricing Time on the Pricing Date.
(the "Effective Date")
If the relevant Extraordinary Resolution is passed at the relevant initial Meeting (or at a subsequent adjourned Meeting) and the Eligibility Condition is satisfied, the relevant Supplemental Trust Deed will be executed by the Issuer and the Trustee and the modifications to the Conditions of the relevant Series described in the Consent Solicitation Memorandum will be implemented with effect on and from
If a quorum is not achieved at a Meeting or the quorum is achieved and the relevant Extraordinary Resolution is passed but the Eligibility Condition is not satisfied, such Meeting shall be adjourned and the adjourned Meeting of Securityholders for that Series will be held at a date as will be notified to the Securityholders in the notice of the adjourned Meeting.
The unaudited interim condensed consolidated financial statements of the Issuer for the nine months ended
effect from the date on which a notice of adjournment is issued and such adjourned Meeting will be
held on a date following publication of the Interim Results which will allow for sufficient time for
investors to provide voting instructions post publication of the Interim Results.
The adjourned Meeting will be held in accordance with the terms of the relevant Trust Deed. If the relevant Extraordinary Resolution is passed at the adjourned Meeting and the Eligibility Condition is satisfied in respect of the relevant Series, the relevant Supplemental Trust Deed will be executed by the Issuer and the Trustee and the modifications with respect to such Series described in the Consent Solicitation Memorandum will be implemented on the Effective Date.
Securityholders are advised to check with any bank, securities broker or other intermediary through which they hold Securities when such intermediary would need to receive instructions from a Securityholder in order for that Securityholder to be able to participate in, or revoke their instruction to participate in, the relevant Consent Solicitation before the deadlines specified above. The deadlines set by any such intermediary and each Clearing System for the submission and revocation of Consent Instructions may be earlier than the relevant deadlines specified above.
No consent fee will be payable in connection with the Consent Solicitations.
Capitalised terms used but not defined herein shall have the meanings set out in the Consent Solicitation Memorandum.
Further information relating to the Consent Solicitation can be obtained directly from the Solicitation Agent and the Tabulation Agent:
Lloyds Bank Corporate Markets plc
Telephone: +44 20 7158 1719/1726
Attention: Liability Management Team
Email: [email protected]
Lucid Issuer Services Limited
12 Argyle Walk
Telephone: +44 20 7704 0880
DISCLAIMER: This announcement must be read in conjunction with the Consent Solicitation Memorandum. The Consent Solicitation Memorandum contains important information which should be read carefully before any decision is made with respect to the consent solicitation. If any Securityholder is in any doubt as to the action it should take or is unsure of the impact of the implementation of the relevant Extraordinary Resolution, it is recommended to seek its own financial and legal advice, including in respect of any tax consequences, immediately from its broker, bank manager, solicitor, accountant, independent financial, tax or legal adviser. Any individual or company whose Securities are held on its behalf by a broker, dealer, bank, custodian, trust company or other nominee must contact such entity if it wishes to participate in the consent solicitation or otherwise participate in the relevant Meeting.
The distribution of the Consent Solicitation Memorandum in certain jurisdictions may be restricted by law. Persons into whose possession the Consent Solicitation Memorandum comes are required to inform themselves about, and to observe, any such restrictions.
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