MARKET TALK: All Lloyds Exchange Subscribers Should Get Swapped

15th Jun 2010 08:34

0734 GMT [Dow Jones] All subscribers to Lloyds' recent offer to exchange four of its existing dollar-denominated upper-tier 2 bonds into common shares, should have their bonds fully exchanged, BNP Paribas analysts say. According to the take-up on the offer, 570.8 million new shares would need to be issued, significantly less than the 750 million share maximum. In addition, Lloyds also closed negotiations with the holder of some yen bonds issued by HBOS to exchange these bonds for equity with a maximum number of 500 million shares. BNP says that all in all, Lloyds should therefore have created GBP783.6 million of core Tier 1 representing an increase of 15.5 bps to the core Tier 1 ratio of 8.1%. ([email protected]) Contact us in London. +44-20-7842-9464 [email protected] (END) Dow Jones Newswires June 15, 2010 03:34 ET (07:34 GMT)