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alfathoughts: Holders of hybrid CEISS Bank could suffer maximum take off between 70 % and 80 %

Saturday, September 14, 2013

Holders of hybrid CEISS Bank could suffer maximum take off between 70 % and 80 %

The holders of hybrid instruments and subordinated debt could suffer remove CEISS Bank which would range between 69.86 % and 79.87 % , which ultimately depend on whether integration is embodied in Unicaja entity , according to the resolution plan hybrid management communicated the FROB .

The cuts would come to 79.87 % in the case of a special issue of subordinated debt and would apply if the agency led by Antonio Carrascosa participate in the shareholding of Banco CEISS , given that the European Commission requires an additional cut so that this participation is not less than 50 % stake in the entity. This would be the value of reinvestment , as the FROB .

If the entity resulting from the merger of Caja Caja Duero Spain and integrates with Unicaja , removes it would reach a maximum of 69.86 %. This discount proceed repurchase value . " For the computation of the 50 % stake will be taken into account shares issued as those arising from the exchange of the ' coconuts ' ( convertible bonds) to be delivered to holders of hybrid " explains the FROB .

CEISS Bank has an outstanding principal amount of hybrid instruments and subordinated debt of more than 1,400 million euros. However, the discounts would be 10% on some issues, they would reach almost 40 % if the FROB must participate in the state.

Financial sources have told Europa Press that must be borne in mind that the merger between Banco Unicaja CEISS and is close shut , so that in the time that is done , the cuts " would not be so hard" as the resolution of the FROB brand . "It is expected that these cuts are more similar to repurchase prices reinvestment value " , have been added .

Just a week ago , the supervisor agreed to amend the resolution plan CEISS Bank in order to incorporate the supply of Unicaja Bank to seize this entity. The European Commission did the same at the beginning of this week.

The plan kept the amount of 604 million euros of public financial support provided in the initial plan CEISS Bank . This aid has been implemented by subscribing contingent convertible bonds (cocos ) by the FROB issued by that entity , so capitalization reached levels set by Europe, which implies not nationalization .

The Commission ranked CEISS Bank in the ' Group 2 ' to be a bank " capital deficit could not meet privately without state help the deficit ' .

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