Anglo Irish Investors to Swap $950 Million Debt at 80% Discount
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Anglo Irish Bank Corp. said holders of 690 million euros ($950 million) of its 2017 subordinated bonds agreed to swap their debt for new notes at an 80 percent discount as the government spreads the burden of the banking crisis.
Investors with 92 percent of the 750 million euros of outstanding bonds will now receive 136.8 million euros of one-year government-guaranteed securities paying 375 basis points more than the euro interbank offered rate, Anglo Irish said in a statement today. The discount allows the nationalized bank to generate a gain that can be used to bolster its capital ratios.