Landsbankinn hf.
Landsbankinn hf.: Agreement between Landsbankinn and LBI to amend bond terms enters into force
Landsbankinn hf. 04.12.2014 19:15 Dissemination of a Adhoc News, transmitted by DGAP - a service of EQS Group AG. The issuer is solely responsible for the content of this announcement. --------------------------------------------------------------------------- On 8 May 2014, Landsbankinn hf. and the Winding-up Board of LBI hf. reached an agreement on amendments to the settlement bonds negotiated in December 2009. The Winding-up Board of LBI hf. made the agreement conditional on receiving certain exemptions, in accordance with the Foreign Exchange Act. The Winding-up Board of LBI hf. has today notified Landsbankinn that the authorities have approved the necessary exemptions and that the agreement has as a result entered into force. The final payment from Landsbankinn to LBI hf. will now take place in October of 2026 instead of October 2018. The outstanding amount is paid in ten bonds maturing every second year, issued in GBP, USD and EUR. Landsbankinn is authorised to make full or partial prepayment, without cost, at any time during the term. Landsbankinn and the Winding-up Board of LBI have also agreed on amendments that allow Landsbankinn, under certain circumstances, to postpone payment of the amounts maturing in 2018 and 2020. Furthermore, the minimum collateral requirement has been lowered from 125% to 115% of the outstanding amount at each time. Interest rates will remain unchanged at a 2.9% margin until October 2018, stepping up to a 3.50% margin for the 2020 tranche to end at a 4.05% margin for the final maturity in 2026. Each tranche maturing in 2016 to 2026 will amount to the equivalent of ISK 30 billion, with the exception of the 2018 tranche in the equivalent amount of ISK 40 billion. Upon entry into force of the agreement, Landsbankinn will pay the equivalent of ISK 30 billion and the outstanding amount on the bonds will subsequently equal ISK 196 billion. Steinthór Pálsson, CEO of Landsbankinn: 'This is excellent news for the Icelandic economy. This agreement represents an important step towards resolving national debt issues and lifting capital controls. The terms of the new bond are very manageable for Landsbankinn and the amendment will facilitate the Bank's efforts to secure financing on international markets, as we have previously stated. This agreement also abolishes special restrictions on dividend payments, for the benefit of the Bank's shareholders. This is an extremely important milestone for Landsbankinn, one we have worked tirelessly to achieve in recent years.' The bonds were issued based on decisions by the Financial Supervisory Authority, Iceland, in accordance with provisions of the Emergency Act. The amount was determined based on the difference between the value of assets and liabilities transferred to Landsbankinn. For further information contact: Kristján Kristjánsson, pr@landsbankinn.is, +354 410 4011/+354 899 9352 News Source: NASDAQ OMX 04.12.2014 The DGAP Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases. Media archive at www.dgap-medientreff.de and www.dgap.de --------------------------------------------------------------------------- Language: English Company: Landsbankinn hf. Iceland Phone: Fax: E-mail: Internet: ISIN: IS0000023489 WKN: End of Announcement DGAP News-Service ---------------------------------------------------------------------------
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