Lloyds Grp 9.25 Discussion Threads

[holts] 06/4/2009 18:24

mm's would not do any good size deals without premium.

[ptolemy] 06/4/2009 12:35

Moving up nicely, today!

[zangdook] 06/4/2009 12:06

Thanks, all.

(edited)

[colinc57] 06/4/2009 12:00

the 25p was something about 25p being tier cpaital , but divs and redemption based on £1

[rat attack] 06/4/2009 11:36

zangdook - par=£1

[eithin] 06/4/2009 11:33

The number of shares you hold x 4.625p is the divi you receive twice a year, total 9.25p. About 31st. May and 30th. Oct. Goes ex about 3 weeks prior pay date... The non-cum means if a divi payment is missed it is not added to future divis...

[zangdook] 06/4/2009 11:25

Now I'm puzzled. According to Hargreaves Lansdown, these are

Lloyds Banking Group plc 9.25% Non-Cum Irrd Pref Shares GBP0.25

So the nominal value is 25p, but the interest paid is 9.25% of £1, is that correct?

Sorry for the beginner's question. There really doesn't seem to be much documentation on these online - thanks for the various links, Collins Stewart especially was helpful.

[rat attack] 06/4/2009 09:32

Seems to be about 3 weeks before div is paid, so May wk1.

[kimboy2] 06/4/2009 09:21

Is this any good ?

[zangdook] 06/4/2009 09:13

Does anyone know the xd date for these? Or, better, is there a website which lists relevant info on all the LLPx prefs? Lloyds themselves don't seem to have put them on their website yet.
Thanks

[solomon9] 04/4/2009 10:38

Lower tier 2 is usually subirdinated or junior bonds somethimes perpetuals

[bluetooth] 03/4/2009 16:41

The whole series seem to be moving up at last - no volume to speak of though.

[supernumerary] 26/3/2009 13:40

Wild guess - they're the PIBS from the old building societies eg see here: for Halifax PIBS?

There may be others - wildly arcane stuff!

[ptolemy] 26/3/2009 12:53

From FT: The price of insurance against default on the iTraxx index of sub-financial debt dropped by 7 basis points Thursday morning to 293bp after Wednesday's exchange offer from Lloyds Group that gives investors in the lower tier 2 bonds of Lloyds TSB, HBOS and Bank of Scotland the chance to swap their holdings, which are trading at deeply discounted levels, for new senior debt.


Anyone know what is defined as 'lower tier 2'?

[kimboy2] 26/3/2009 09:39

I suspect that the problem with all these preference shares, including the RBS $prefs, is that they are relatively illiquid markets. The shares will have been taken up by instituions who now have to get rid of them for various reasons.

[kimboy2] 26/3/2009 09:25

Hi Jonwig
A capitalisation issue is a srip issue which would seem to me to fall under the tems of 'distribution or dividend or make any other payment'.

[jonwig] 26/3/2009 09:00

The Prefs prospectus states (page 80):

5 Restrictions on Dividends and Redemption

If the Company has not declared or paid in full a Preference Dividend stated to be payable as a result only of the exercise of the discretion of the Board of Directors or the Committee, then the
Company shall not during the Stopper Period:

(a) redeem, purchase, cancel, reduce or otherwise acquire in any other way any Junior Share Capital or the 2004 Preference Shares; or

(b) declare, or pay or set aside any sum for payment of any distribution or dividend or make any other payment on, and will procure that no distribution or dividend or other payment is made on, any Junior Share Capital or the 2004 Preference Shares.

That's clear - no prefs div means no ords div.
What I'm unclear about is the status of a scrip div on the ords.
Does the proposed 1:40 issue count as an ordinary div?

Apologies if that's already been discussed.

[holts] 25/3/2009 11:07

i wish i knew, you can make a variety of cases to justify buying or selling

[renew] 24/3/2009 20:21

Then why have they been buying the ordinaries!

[future financier] 24/3/2009 11:14

solomon "No one gives a tinker's poop about this stock, doing nothing except sitting on its behind." - and paying a fat divi!