Metro Bank Gets Bondholder Backing for Debt Restructuring

Metro Bank Holdings Plc said it has secured sufficient consent from its bondholders to extend its senior debt and restructure its junior notes as part of a rescue deal agreed over the weekend.

(Bloomberg) — Metro Bank Holdings Plc said it has secured sufficient consent from its bondholders to extend its senior debt and restructure its junior notes as part of a rescue deal agreed over the weekend.

The UK challenger bank has received support from holders of over 75% in value of both its senior and junior notes, potentially making the deal binding for all creditors, according to a statement on Wednesday.

Metro Bank reached an agreement with investors on Sunday to raise new equity and restructure debt, but was still looking to get support from more than three quarters of the creditors to go ahead with the transaction.

As part of the agreement, the senior bond due 2025 will be exchanged for a new note with the same seniority due 2028 that will pay a higher coupon. On top of that, existing bondholders led by hedge fund Caius Capital LLP will underwrite £175 million of additional senior bonds.

Separately, holders of a tier 2 bond will swap 60% of the nominal value for a new tier 2 instrument due 2034 with a 14% coupon, while the remainder will be written off. Existing shareholders led by billionaire Jaime Gilinski will inject new equity.

More stories like this are available on bloomberg.com