Mps today announces the launch of a public purchase offer on 11 subordinated bonds, for a total value of 4.289 million, with the obligation for the members to reinvest the proceeds in share capital increase of 5 billion. The has officially announced a note from the bank.
The price of conversion are set to 85% of the nominal value for bonds Tier 1 and 100% for bonds Tier 2, with the exception of a small obligation to repurchase are offered the 20% of the nominal value.
If the conversion of the bond are subordinated, in the actions of the Mps “did not have a satisfactory outcome”, the consortium banks could avoid the commitment to
ensure any inoptato of the increase from 5 billion, with the consequence that Mps “would not likely” to close the recapitalization. And if this were to happen, the Mps may be subjected to “extraordinary actions on the part of the competent Authorities, which may include, among other things, the application of the resolution tools”.
Npl, for the platform Juliet challenge between doBank and Cerved
Mps to the holders of bond: no increase in forced conversion. the Mps warned the owners of the bonds subject to which it is addressed the offering of voluntary conversion into shares, that if the capital increase from 5 billion to fail, the securities may be subject to reduction in face value” or “forced conversion” of shares, according to the criteria and in the order stipulated by the legislation on the resolutions of banking.
If the safety fails and the Mps was not able to comply with the capital requirements” requested by the Ecb, explains the bank, in a note, the institute siena “could suffer serious harm to its business, up to compromising the existence of the necessary conditions for the continuity of the company, as well as important negative effects on the economic, equity and financial”.
Mps: conversion to 11-bond-the equivalent of 4.3 bn
failure to comply with The capital requirements may result in the application of the resolution tools “that provide, among other things, the possible forced conversion of the subordinated securities”.
Cda takes time about how to increase
For the Mps an “high adherence” to the proposed conversion assumes “fundamental importance” for the success of the capital increase, because “it would reduce the amount of recapitalisation to be placed sl market, with the result that “increase the odds of success.”
the Mps recalled that the conditions to which it is subject, the commitment of the banks to subscribe the contract of guarantee of the inoptato of the increase is “the satisfactory completion of the LME (liability management exercise, that is, the conversion of the bond, ndr), according to the judgment, in good faith, of each of the members of the Consortium acting as joint Global Coordinators”.
“It follows that – the note continues -where the LME does not have a satisfactory outcome, according to the judgement, in good faith, of each of the members of the Consortium acting as the joint Global Coordinators, would be less also the commitment of the Guarantors to sign a contract of guarantee” on the inoptato and “accordingly,” Mps “, would not be expected to carry out the Increase.
in the Event the increase is not to be concluded, the Mps “could not complete the deconsolidation of the Portfolio of NPL”, that is, of non-performing loans. “This” – notes the bank may cause the same to become subject to extraordinary actions on the part of the competent Authorities, which may include, among other things, the application of the resolution tools referred to in D. Lgs. 16 November 2015, no. 180″, which has transposed the european directive on the resolution of banks.
© Reproduction reserved
No comments:
Post a Comment