alfathoughts: Holders of preferred stock will suffer BMN remove up to 60 %

Saturday, September 14, 2013

Holders of preferred stock will suffer BMN remove up to 60 %

Holders of preferred shares of Banco Mare Nostrum ( BMN ) suffer remove up over 60 % according to the hybrid resolution plan that has generated the Fund for Orderly Bank Restructuring ( FROB ) .

In addition, the FROB said considering the negative net asset value of the entity, which is estimated at 12.378 million euros, and the total nominal value of outstanding ( excluding own portfolio balances ) of hybrid capital instruments and subordinated debt amounting to 449 million euros , the amount they will receive the headlines is also "superior to what they would receive on a liquidation scenario .

Specifically , BMN buy back their preference share issues with a take off from a range of 27.1 % and 60.7 % , depending on the issue, which pay cash for immediate subscription and payment in new shares of the entity. This will cut up to 70 % in case of an FGD emission Caja Granada , according to the agency led by Antonio Carrascosa .

In the case of perpetual subordinated bonds will take them off from 70 % to almost 38 % , while for term subordinated debentures with maturity date prior to January 1, 2016 , there will be a rebate of 10% and reinvest cash amount in a bank deposit.

The FROB controlled entity shall be a capital by a cash amount of EUR 347.89 million to meet management action hybrid capital instruments and subordinated debt through the issuance and circulation of 259 , 62 million shares of EUR 1 par value of 0.34 euro premium.

BMN aid received by 1,645 million euros. Specifically , received 915 million euros through the issuance of convertible preferred shares subscribed by the FROB , whose conversion occurred on February 19, 2013 , and another 730 million euros through a capital increase subscribed also by the FROB .

Banco Mare Nostrum ( BMN ) , is society, born in 2010 , which forms the SIP of the merger of four savings banks : Caja Granada , Caixa Pened├Ęs , Sa Nostra and Caja Murcia .

This is the detail of the cash amount to be received by holders of preferred shares as consideration for the mandatory repurchase of its values

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