HM Treasury get Buffett-style terms from the Banks Monday, October 13, 2008
Extract from LloydsTSB regulatory news announcement this morning
HM Treasury will subscribe for £1.0 billion of Lloyds TSB preference shares. The preference shares will carry an annual coupon of 12% (non tax deductible), and will be callable after a period of five years.
Under the terms of the preference shares, the enlarged Group will be precluded from paying a cash dividend on its ordinary shares whilst any of the preference shares remain outstanding.
Not cheap financing for a Group that only two weeks ago was insisting it was in decent shape.