FACTBOX: Advisers for UK banks' capital-raising deals

Mon Oct 13, 2008 2:02pm EDT
 
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(Reuters) - UBS (UBSN.VX), Merrill Lynch MER.N, the JPMorgan Cazenove (JPM.N) CAZ.UL joint venture are winning deals as the British government pumps in 37 billion pounds ($64.5 billion) of taxpayers' money to bail out three major banks on Monday.

But bankers say these investment banks are unlikely to earn big underwriting fees because the UK Treasury will be taking most of the underwriting risks.

Following are the advisers to the capital raising plans of major UK banks:

RBS (RBS.L)

-- Merrill MER.N and UBS (UBSN.VX) are joint financial advisers.

-- RBS is to raise 15 billion pounds worth of core tier 1 capital at 65.5 pence each, resulting in 22.9 billion of new shares on top of 16.5 billion current shares, leaving existing shareholders with a 40 percent stake.

-- Treasury will subscribe for 5 billion pounds of preference shares (coupon of 12 percent, callable five years, not convertible to shares), further increasing RBS's tier 1 ratio to around 10 percent.

-- Prospectus expected in late October.

-- No dividend will be paid on common shares until the preference shares have been repaid.

LLOYDS TSB (LLOY.L)

-- Merrill Lynch, UBS and Citi (C.N) are the joint bookrunners for placing the offers.

-- Lloyds is to raise 4.5 billion pounds by issuing common shares, with the UK government subscribing for 2.6 billion pounds worth of the new shares at 173.3 pence each, an 8.5 percent discount to the closing price on October 10.

-- Lloyds is to issue 1 billion pounds of preference shares, which carry a coupon of 12 percent and are callable after five years.

-- Lloyds also revised the HBOS buyout terms, offering 0.605 Lloyds shares for every HBOS share, resulting in 7.8 billion new shares now.

-- Core tier 1 ratio to reach 8.5 percent.

HBOS HBOS.L  Continued...

 

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