Co-Op Bank Starts Sale Process, Mulls Debt for Equity Swap
- U.K. lender hires Bank of America, UBS to start sale process
- Bank is also considering a liability management exercise
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Co-Operative Bank Plc, the British lender that ceded control to its creditors three years ago, is considering swapping bonds for equity to raise capital while also starting a sale process.
Low interest rates hurting earnings and higher-than-anticipated restructuring costs led to a “significant” loss for 2016 and have pushed Co-Op Bank’s board to consider looking for a buyer, the Manchester, England-based lender said in a statement on Monday. The bank is also considering a liability management exercise of its outstanding debt to raise capital as it operates below some regulatory guidance measures of financial strength.