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Co-Operative Notes 2023 (GB00BFXW0853)

valueinvestor123
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Co-Operative Notes 2023 (GB00BFXW0853)

#181403

Postby valueinvestor123 » November 19th, 2018, 2:35 pm

Hi,
Has anyone held the Co-Operative Notes 2023 (GB00BFXW0853)? I was supposed to receive "Balloon Street Shares" in exchange of the original holding.
About a year ago, my broker sent me a form (that I forgot to fill out). Do you know how and whether I can still get hold of those shares somehow?
Also: what can you do with them? Is there a way to sell them?
thanks, vi123

valueinvestor123
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Re: Co-Operative Notes 2023 (GB00BFXW0853)

#182539

Postby valueinvestor123 » November 23rd, 2018, 2:22 pm

I had a message from my broker regarding this:

“Further to the restructuring and cancellation of Co-Operative Bank Holdings Notes (ISIN: GB00BFXW0853) in 2017, your original holding entitled you to Co-operative Bank Holdings A Shares as a Scheme Creditor. As your documentation required to claim the new Shares was not received prior to the August 2018 deadline, Co-Operative Bank have sold the A Share entitlement at a rate of £0.045 per A Share less transaction fees. The resultant proceeds will be credited to your account today.”

Did they get the comma in the wrong place? I thought the price was meant to be £0.45p per share, not £0.045. Is there any documentation about this from Co-Op I can back it up with when I write back to them?
Crap. Fell asleep with this one.

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Re: Co-Operative Notes 2023 (GB00BFXW0853)

#182552

Postby Alaric » November 23rd, 2018, 3:06 pm

valueinvestor123 wrote: Is there any documentation about this from Co-Op


This appears to be a relevant document.

https://www.co-operativebank.co.uk/asse ... ts/PSL.pdf

in which it says retail investors got £4.50 for every £10 of the Bond. How many A shares that would become didn't seem immediately apparent from the document.
Rather than participate in the Scheme, if the Restructuring is implemented, the relevant 2023 Notes of each Retail Noteholder will be cancelled and the rights, obligations and liabilities thereunder released in consideration for a cash payment (the "Retail Cash Consideration") of up to £4.50 per £10 in principal amount of 2023 Notes (the "Maximum Cash Amount"), plus a sum representing interest accrued and unpaid on the relevant amount of 2023 Notes from 20 June 2017 up to, but excluding,
31 July 2017 (the "Accrued Cash Interest").


If you got 100 A shares for every £ 10 of Bond, the price of 0.045 could make sense.

valueinvestor123
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Re: Co-Operative Notes 2023 (GB00BFXW0853)

#182567

Postby valueinvestor123 » November 23rd, 2018, 4:00 pm

Thanks. I don't understand how it can go from 0.45p to 0.045p.

I bought 4000 of the 42RQ for 79.5p in 2009. And I am only getting 0.045p???

I also bought 4000 of 42TE in 2013 for 90p and I believe they are now trading around 128p (I still hold those).

There were some balloon shares that I never got around for/sending the application form out but why would they screw the retail investor like this and just sell at such a ridiculous price?

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Re: Co-Operative Notes 2023 (GB00BFXW0853)

#182597

Postby Alaric » November 23rd, 2018, 5:48 pm

valueinvestor123 wrote:Thanks. I don't understand how it can go from 0.45p to 0.045p.

I bought 4000 of the 42RQ for 79.5p in 2009. And I am only getting 0.045p???


I suspect it's been a two stage process. First you exchanged a nominal 4000 of bonds for a nominal 40000 in shares. Then the shares were sold at 0.045.

But see what the Broker says.

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Re: Co-Operative Notes 2023 (GB00BFXW0853)

#182635

Postby GoSeigen » November 23rd, 2018, 11:02 pm

valueinvestor123 wrote:Thanks. I don't understand how it can go from 0.45p to 0.045p.

I bought 4000 of the 42RQ for 79.5p in 2009. And I am only getting 0.045p???

I also bought 4000 of 42TE in 2013 for 90p and I believe they are now trading around 128p (I still hold those).

There were some balloon shares that I never got around for/sending the application form out but why would they screw the retail investor like this and just sell at such a ridiculous price?


Should have taken up my offer to buy them off you.

;-)

GS

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Re: Co-Operative Notes 2023 (GB00BFXW0853)

#183543

Postby everhopeful » November 28th, 2018, 2:52 pm

It seems a pity to me that some discussion on these Co-op fixed interest securities takes place on this board and some on the Gilts and Bonds board. If the Gilts and Bonds board were to be called Fixed Interest it might clarify things.


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