Halifax 9.375bd Discussion Threads

[simon gordon] 10/11/2009 13:00

A0,

I don't think the £900 means a damn thing. I think HALP is just exchanged 1 to 1 for the new coupon which pays 11.875%.

[a0148009] 10/11/2009 12:51

Don't quite understand why HALP is so strong it is above the £900 per £1000 Exchange Consideration - have I missed something.

AO

[a0148009] 05/11/2009 09:12

Simon

Thanks for the link HALP Page 156 is 31 in Appendix 1 ECA Priority - 18 is a low coupon Euro Issue not ours. Appendix 3 Page 161 Interaction of Exchange Options and Exchange Priorities, Step 2 aggregated in Pool 2 summarised on Page 162.
As far as I can see interest has yet to be determined as it will be a floating rate on ECN,s. There is also a share option and there appears to be an element of cash.

I am now going to have a bacon sandwich and a strong cup of coffee!

I am sure there will be a number of interpretations from brokers to help us make up our minds, also depends how you hold them for tax purchases ISA's etc - it does not look too bad could have been worse.

AO

[simon gordon] 04/11/2009 20:38

HALP is No. 18 on the ECN list. If you go to Lloyds IR you will find the prospectus for the debt exchange, I think it starts at page 155.

I was also confused by the LSE announcement. It was a real headache trying to work it all out yesterday! I only really twigged it all last night.

[a0148009] 04/11/2009 16:38

Hi Guys

The following should assist you : -



and this which gives the Exchange Consideration for each security : -



Example HALP No. 48 in list - Exchange consideration £900 per £1000
as a basis for calculation.

Hope this helps.

AO

[simon gordon] 04/11/2009 11:03

The whole process is beyond my level of knowledge, the guys on the Motley Fool will be of more help, see header in LLPF for a link to the Fool. If you have a good stockbroker maybe they can advise you.

[solomon9] 04/11/2009 10:47

I have certs for HALP

I have some in an online brokers

and some in a bank account in Austria

most of them are certs under the mattress - should I get them into a bank account or online account?

[simon gordon] 04/11/2009 10:29

According to Collins Stewart HALP will get filled with ECN's. Only problem is that it is not Crestable, this is now the only stumbling block for HALPers.

[solomon9] 04/11/2009 10:05

Err only £5.5bn of the new ECNs are available and £1.5bn of shares for £16bn of o/s perps, prefs FRNs etc.

Hence not everyone is goin to get filled.

The chance is will be left with a rump

[queue] 04/11/2009 09:22

The offer document in respect of the ECN's makes very interesting reading and suggests that if we opt for conversion income will continue and, we shall get an additional premium for taking the risk of being converted to ordinaries should Tier 1 fall beneath 5%.

If we stick with the existing the income payments will cease and that will mean only 1 thing for the price........

The markets tend to agree, with the price now starting to tick up ahead of conversion.

[solomon9] 03/11/2009 19:53

anyone have any smartass ideas now about what the fuxk we do now- looks like we're gonna be taking the pain after all.

I've got the Bank of Ireland 13.375% bond but reckon will be taking 2 years interest free off me too after the EU sticks its nob in. I don't think there will be further big price falls.

The Co-Op 13% I have and Aviva 6.125% 26 and Skipton 6.875% - which I reckon is good value.


Prudential have a good US dollar bond paying 11.75% per $100 nominal priced at $113 maturing in Dec 14

[a0148009] 29/10/2009 13:43

Simon

This is interesting from Collins Stewart:-

It has today been announced by the London Stock Exchange that the Lloyds Banking Group 9.25% pref (LLPC) and 9.75% pref (LLPD), will both go ex dividend on Wednesday 11th November, for payment on 30th November.

Separately, Lloyds Banking Group has confirmed that "Capital raising options currently under consideration include.....generating contingent core tier 1 and/or core tier 1 capital through the exchange of certain existing Group capital securities."



This confirms recent speculation that exchange offers may shortly be made on prefs and subordinated bond issues. We believe any offers are likely to focus more on lower coupon issues such as Lloyds 6.475% pref (LLPE) and Lloyds 6.0884% (LLPD), as the transaction will be largely driven by Lloyds' ability to lock in profits by retiring capital at a discount.

Today's announcement makes no mention of the possibility of non-payment of interest or dividends on any bonds or prefs.

Many thanks

Rik Edwards

[a0148009] 21/10/2009 08:43

Simon

The coupon suspension issue is critical it only needs one bank to do so and it could open the flood gates.

AO

[a0148009] 20/10/2009 23:37

simon



I own a few of the rbsprs 's' series denominated in US$ - pays an annual gross coupon of 6.6% quarterly. They were issued at $25 and are callable on or after 30th June 2012 @ $25 probably unlikely, could also be a target for suspension of dividend but as issued in USA think unlikely unless it became a vogue.

I am up to my personal investment limit on bank bonds now and running them for yield + capital gains - things could turn nasty again so monitoring closely.

AO

[simon gordon] 20/10/2009 14:07

Hi A0,

HALP would be 130p+ if coupons are not suspended. We should find out in the next two weeks.

I also hold: LLPC, LLPE, HBO4, 63GF, CPBB, CPBC, ELLA, NABA, RUSP & SBSB.

What are your top picks at the moment, I am keen on LLPE, RUSP & SBSB.

[a0148009] 20/10/2009 13:54

Simon

Good to find a fellow investor, thanks for posting prospectus.

First bought early Nov 2008 at 90 averaged down now showing small profit after
interest payments and a rocky ride, good income for ISA if you believe they will not suspend interest payments and convert into equity which has been muted
by some commentators.

Also own Bank of Ireland 13 3/8% Perpetual Subordinated Bonds which replaced a similar Bristol and West issue.

Both could be very rewarding if we get through this crisis.
Would like to exchange info on other Bonds if you are interested.

AO

[simon gordon] 03/10/2009 17:02

~Perpetual.
~Cumulative.
~Issue Size: 15m.
~Trades Clean.
~Pays: 1/3 & 1/9.

Prospectus (Page 15):