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Co-op Bank deal in the offing?

GoSeigen
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Re: Co-op Bank deal in the offing?

#63420

Postby GoSeigen » June 28th, 2017, 1:08 pm

air04 wrote:Co-Operative Bank Agreement on the Terms of a Capital Raising Plan

http://www.investegate.co.uk/co-operati ... nk%20Alert


Great news for the Senior, which will be redeemed at par in Sep if all goes smoothly.

45p cash offer to retail 2023 subs holders. I have a small amount acquired in the past year and will more or less break even, perhaps a small profit.

GS

hiriskpaul
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Re: Co-op Bank deal in the offing?

#63427

Postby hiriskpaul » June 28th, 2017, 1:23 pm

Yes good news for the 5.125% 2017s. I am very relieved.

You may not get the full 45p for the subs though as there is a limit for retail offering of £13.5m, although I would hope they have sized this correctly. I was just quoted 42p for 10k, so not a great deal of doubt in the market price. No mention of accrued as far as I can see.

I can understand the regulatory issues around retail note holders being offered equity, but I do think retail holders should have been offered warrants or something to participate in any upside.

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Re: Co-op Bank deal in the offing?

#63459

Postby hiriskpaul » June 28th, 2017, 3:19 pm

11% subs now down to 40p. May be a good opportunity - 12.5% upside to 45p being offered to retail plus about 2 months interest is another 4.6%.

Sorely tempted, but there is the retail cap to worry about and I already have too much skin in the game with my Senior, so will pass up (for now).

Alternatively, I could sell the Senior and buy a much smaller amount of subs...

hiriskpaul
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Re: Co-op Bank deal in the offing?

#63465

Postby hiriskpaul » June 28th, 2017, 3:43 pm

Decided to take a punt on 10k nominal at 40p, plus 10 days interest of £29.89.

Assuming I get 2 months accrued, that is a break even price of 38.17p. Assuming the LME goes through (certainly not guaranteed), that would imply a maximum retail holding of about 35m nominal in order to hit the £13.5m retail cash cap. Maximum upside is about 46.8p (assuming 2 months accrued), or 17.1%.

hiriskpaul
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Re: Co-op Bank deal in the offing?

#63475

Postby hiriskpaul » June 28th, 2017, 4:26 pm

Just noticed something in the announcement I missed before:

"Retail noteholders of the 2023 Notes ("Retail Noteholders") (individual persons with a holding of an aggregate principal amount of £100,000 or less and to be further defined at the time of launch) as of 27 June 2017 are expected to receive cash, at a level equivalent to up to 45% of the nominal value of their 2023 Notes and subject to an overall cap of £13.5m on the aggregate cash amount to be paid to Retail Noteholders and potential downward adjustment to the cash amount to be paid to Retail Noteholders if such a cap is reached."

As today is 28 June, I may not be classified as a Retail Noteholder and may end up with equity!

B****r.

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Re: Co-op Bank deal in the offing?

#63877

Postby hiriskpaul » June 30th, 2017, 10:54 am

Sold the 11% subs again at 40.5 due to the uncertainty over whether I will be landed with equity.

The non-retail sub bond holders seem to be getting a very raw deal here, contributing 63.9% of CET1 but only getting 17.4% of the shares. Over on OBR's board someone has questioned whether the RNS is accurate in this respect. If it was materially wrong I would have expected a correction by now, so I think the RNS must be correct. Under the circumstances there must be some doubt as to whether the restructuring will actually happen. Will bondholders prefer to take their chances with resolution?

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Re: Co-op Bank deal in the offing?

#67318

Postby hiriskpaul » July 14th, 2017, 5:07 pm

Publication of the Practice Statement Letter: http://www.londonstockexchange.com/exch ... 96136.html

Section 5 lays on the line the expected outcome if shareholders and bub bondholders don't approve the scheme:

"In this scenario [PRA resolution], the Bank
believes that the Ordinary Shareholders will receive no recovery in respect of the
Ordinary Shares that they hold and that the Subordinated Noteholders will
receive no recovery in respect of the Subordinated Notes that they hold."

They still only have 57% of the 2023 Notes in lock-up (91% of 2025 notes, 57% of shareholders), so this could still fail.

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Re: Co-op Bank deal in the offing?

#70386

Postby Wizard » July 29th, 2017, 1:06 am

http://www.londonstockexchange.com/exch ... 12084.html

As announced on 28 June 2017, the Bank has entered into an agreement (the "Lock-Up Agreement") with certain investors and the parties to that agreement have committed, subject to certain conditions, to take certain steps to implement the Restructuring. As of 5pm today, investors which hold 91% of the Notes (80% of the 2023 Notes and 99% of the 2025 Notes) have entered into the Lock-Up Agreement. Investors which hold 80% of the Bank's ordinary shares have also agreed to support the Restructuring, including 20% indirectly held by Co-operative Group Limited, subject to certain conditions.

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Re: Co-op Bank deal in the offing?

#78471

Postby GoSeigen » September 1st, 2017, 4:41 pm

All done and dusted now for the 2023 notes: eligible retail holders will get 46.226p per Note held including accrued interest:

http://www.londonstockexchange.com/exch ... 49479.html


It's a shame Selftrade mucked me about when I was trying to buy a bunch more at 30p. "We do not allow you to place limit orders with our dealers any more." Then I shall not give you my business any more, Selftrade.


GS

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Re: Co-op Bank deal in the offing?

#79518

Postby Laughton » September 6th, 2017, 3:00 pm

In a couple of weeks I have two holdings that will be redeemed – RECP & 77UQ.

But what to do with the proceeds? Cash is always nice but it doesn’t earn anything and I really need to replace the income that I’ll no longer be receiving from Real Estate Credit & Co-Op Bank.

Any suggestions will much appreciated.

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Re: Co-op Bank deal in the offing?

#80115

Postby youfoolishboy » September 9th, 2017, 2:19 pm

Laughton wrote:In a couple of weeks I have two holdings that will be redeemed – RECP & 77UQ.

But what to do with the proceeds? Cash is always nice but it doesn’t earn anything and I really need to replace the income that I’ll no longer be receiving from Real Estate Credit & Co-Op Bank.

Any suggestions will much appreciated.

Raven Russia Prefs RUSP is a favorite location for me at the moment.

valueinvestor123
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Re: Co-op Bank deal in the offing?

#84581

Postby valueinvestor123 » September 29th, 2017, 6:00 pm

Sorry for stupid question but I have been asleep since I first purchased this holding.
I just received a letter from Selftrade:
"Further to our ooperative Bank restructuring and recapetc etc now entitles you to receive Balloon Street Shares under the creditors scheme in exchange for your original holding."

I do (did?) hold 42RQ (and still hod 42TE) but thought that I will get cash instead of shares? What are these shares? Are they publicly traded? I don't think I want them since the form looks daunting to complete. What happens if I just ignore it the letter? And what are you guys doing about it?
Confused...vi123

valueinvestor123
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Re: Co-op Bank deal in the offing?

#84594

Postby valueinvestor123 » September 29th, 2017, 6:56 pm

PS: I think I was supposed to "register" as a "retail holder" in order to receive the cash. I obviously didn't do it as I never check the corp messages and received the credit arrangement registration docs. I also would have assumed that it was clear that I am a retail holder...
Can I still get the cash? i don't know what I'm supposed to do with the balloon shares....blow them up?
I emailed Selftrade.

hiriskpaul
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Re: Co-op Bank deal in the offing?

#86263

Postby hiriskpaul » October 6th, 2017, 11:17 am

valueinvestor123 wrote:Sorry for stupid question but I have been asleep since I first purchased this holding.
I just received a letter from Selftrade:
"Further to our ooperative Bank restructuring and recapetc etc now entitles you to receive Balloon Street Shares under the creditors scheme in exchange for your original holding."

I do (did?) hold 42RQ (and still hod 42TE) but thought that I will get cash instead of shares? What are these shares? Are they publicly traded? I don't think I want them since the form looks daunting to complete. What happens if I just ignore it the letter? And what are you guys doing about it?
Confused...vi123

I sold my 42RQ so have not followed the precise settlement of these, but I do remember that you had to register as a retail holder and provide evidence that you held the shares on the cutoff date in order to get the cash. Otherwise you will get the shares, which are unlisted. That means if you hold them in an ISA they will be moved outside. Selling the shares may well be difficult. If I had any I would sit tight. They could do very well.

Thankfully the senior unsecured matured as expected.

valueinvestor123
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Re: Co-op Bank deal in the offing?

#86579

Postby valueinvestor123 » October 7th, 2017, 10:11 pm

hiriskpaul wrote:
valueinvestor123 wrote:Sorry for stupid question but I have been asleep since I first purchased this holding.
I just received a letter from Selftrade:
"Further to our ooperative Bank restructuring and recapetc etc now entitles you to receive Balloon Street Shares under the creditors scheme in exchange for your original holding."

I do (did?) hold 42RQ (and still hod 42TE) but thought that I will get cash instead of shares? What are these shares? Are they publicly traded? I don't think I want them since the form looks daunting to complete. What happens if I just ignore it the letter? And what are you guys doing about it?
Confused...vi123

I sold my 42RQ so have not followed the precise settlement of these, but I do remember that you had to register as a retail holder and provide evidence that you held the shares on the cutoff date in order to get the cash. Otherwise you will get the shares, which are unlisted. That means if you hold them in an ISA they will be moved outside. Selling the shares may well be difficult. If I had any I would sit tight. They could do very well.

Thankfully the senior unsecured matured as expected.


If the shares do well, how will I be able to sell them in the future if they are unlisted?
(Incidentally, I also hold Mapeley shares and have no idea what to do with them either).

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Re: Co-op Bank deal in the offing?

#87046

Postby hiriskpaul » October 9th, 2017, 8:19 pm

While the shares remain unlisted you will need to find someone who wants them. There may be alternative routes, e.g. share matching services like JP Jenkins. Otherwise hold out until an IPO or takeover.


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