HM Treasury get Buffett-style terms from the Banks

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.

Reblog this post [with Zemanta]

Labels: , , ,

posted by John Wilson @ 9:30 AM Permanent Link newsvine reddit


Post a Comment

newsvine reddit

Links to this post:

Create a Link

<< Home