Lloyds Grp 9.25 Discussion Threads

[nerja] 08/5/2012 11:26

jonwig,
Thanks a lot for the info, often wondered why the premium between for LLPE to LLPC & LLPD

[jonwig] 08/5/2012 11:05

Nerja - an example....

Suppose XYZ 6% is priced at 94 is due to be redeemed at 100 in 3.5 years time.

The running yield is 6/0.94 = 6.38%.
The capital gain is 6 over 3.5 years which is 6/3.5 = 1.71 pa or 1.71/94 = 1.82%.

Redemption yield is 6.38 + 1.82 = 8.2%.

If XYZ traded above 100 there would be a capital loss so you'd subtract at the end.

(Actually all the above is just an approximation as it takes no account of the discounting over time of the capital element.)

[nerja] 08/5/2012 09:24

dalesiders
How do they work the yield to call out? Is it the yield plus the issue price divided by the years remaining, its always puzzled me. TIA

[dalesiders] 08/5/2012 08:44

harmonics - is that in comparison to LLPE's running yield or redemption yield?

[harmonics] 07/5/2012 20:22

Should be 106p pro-rata to LLPE!

[zangdook] 06/5/2012 17:01

taking into account the differences in the terms? ie NWBD didn't default during the EU interference; NWBD pays 133% in specie if it does default etc.

[monty panesar] 05/5/2012 20:54

Compare this with NWBD and this is 10 points too cheap

[harmonics] 03/5/2012 07:25

I have been buying these since 70p, managed to buy the last lot on Tuesday at 95p.
I will hold as long as they stay in coupon, for a long term investment these are a no-brainer!

[smarm] 01/5/2012 17:50

eeza - thanks, I bought earlier today so hope it's true.

S

[eeza] 01/5/2012 17:40

Smarm
See last few posts on the Fixed Income thread - FIX.

[smarm] 01/5/2012 17:30

holts - where does that come from please?

S

[cwa1] 01/5/2012 15:07

Respectable volume gone through so far today. Perhaps reducing the surplus that seems to have been about for a while. Though can still trade 100,000 lots online so there must still be a bit of stock about-just not as much with any luck :-)

[holts] 01/5/2012 14:11

Lloyds Banking Group have today announced that their 9.25% preference shares (LLPC) and 9.75% preference shares (LLPD) will be marked ex dividend on Wednesday 9 May, for payment of six months dividend on 31 May.
This confirms the predictions in our previous e-mails that these issues would resume regular payments on their scheduled dividend dates.

[cwa1] 01/5/2012 08:38

No jonwig, I agree, in my opinion it was never in any doubt-but it's just an extra layer of comfort to see it said so explicitly with no "wiggle room" and perhaps the little extra push that some might need to buy in to this very nice looking counter.

[jonwig] 01/5/2012 08:32

CWA - I thought they'd paid one of the prefs (LLPF, was it?), and the rules say they have to be treated equally. So could payment of LLPC have been in any doubt?

True, eithin's quote in post #666 seems to be the first time they've actually said it plainly.

[cwa1] 01/5/2012 08:18

Looks about as plain and clear as they can be about it definitely re-starting here, doesn't it?

Getting in at the current 95p, with almost 5p already "in the bag"(XD in next week I guess) as it were gives a fabulous ongoing, perpetual, yield of 10%+ IF they continue to pay it, so I've decided to top up here.

Fingers crossed and all that

[eithin] 01/5/2012 08:07

From today's results:-
From 31 January 2010 the Group was prohibited under the terms of an agreement with the European Commission from paying discretionary coupons and dividends on hybrid capital securities issued by the Company and certain of its subsidiaries. This prohibition ended on 31 January 2012. The Group has now recommenced payment of coupons and dividends on certain of these hybrid capital securities. Future coupons and dividends on hybrid capital securities will be paid subject to, and in accordance with, the terms of those securities.

Below 100p looks good to me..

[cwa1] 27/4/2012 12:39

44 trades by middle of day. Quite impressive by LLPC standards. Excellent price at 94.6, all things being equal, so grabbed a few more myself.

[holts] 24/4/2012 14:46

from broker

Lloyds Banking Group have announced that its 6.0884% non-cumulative preference shares (LLPF Crest settlement, LLPL Euroclear settlement) will go ex dividend tomorrow April 25, for payment of six months dividend on May 14.

No announcement has yet been made in respect of the 9.25% or 9.75% preference shares (LLPC and LLPD) which are due to pay on May 31, but we regard the ex dividend announcement for the 6.0884% preference as confirmation that the 9.25% and 9.75% prefs will shortly announce ex dividend dates.

[the diviner] 20/4/2012 17:46

As I recall; (in the Lloyds prospectus), it counts an offer as a Variation of Rights and it will need at least 75% of the holders to vote for the offer for it to be accepted.

It is also correct that Lloyds cannot make us an offer until after they restart the dividends.

These are not the same as the redeemables because an offer for these will need to be much more generous if it is to succeed.

If Lloyds did make an offer; I would not vote to accept anything less than 145p at the very least.

[kaspex] 20/4/2012 11:19

I asssume that Lloyds cannot start any buying at the market until they start to declare a dividend on the ords. Then they would presumably make an offer in the market at a good rate say 7% yield which is typical of redeemables.
Hence a price near 130p. Otherwise no takers?

[holts] 20/4/2012 10:46

i haven't checked the prospectus , is there a percentage of acceptances upon which any tender is able to become compulsory ?

[the diviner] 20/4/2012 02:35

The fact that LLPC and LLPD are both irredemable is one of the things that I like about them.

Lloyds can only buy up LLPC and/or LLPD shares if the holders want to sell and we will only vote to sell if they make us a very attractive offer.

FWIW, I would expect the LLPC and LLPD share prices to actually rise after the payments are confirmed because at the present time the share prices still seem to be really low when the stonking dividend is taken into account.