Lloyds Prefs Tender Offer

[XFool]

I hold LLPC at HSDL. Had a look this morning and no sign of the tender offer appearing as a corporate action on my account (yet), so I may not be able to tender my prefs. I'll have another look at the end of the week.

I was wondering about this - though mine are not with HSDL. They are legally 'shares' but they do always appear overlooked. How long to wait before asking? I also still hold 400 'originals' in a Lloyds registrar account - Equinity (Pah! There's already enough going on there to be getting on with, thank you.)

But don't talk to me about registrars!

[tincture]

I'll be tendering my LLPC & LLPD - sad to see them go, had them since the GFC and topped up during the pandemic dip.
Can only see their price trending down with inflation and BoE rates rising and was minded to sell them recently anyway.

If/when these rates start trending the other way I'll buy NWBD back as they have more bullet proof terms IIRC?

Proceeds to FTSE and S&P500 tracker for lack of other ideas
And a small top up to WBS punt given the success of MBSR.

Chris

I hold mine with iDealing and no corp action yet, but I suspect it will be on their website in a few days, they are pretty good with these things.

[digitaria]

II hold mine with iDealing and no corp action yet, but I suspect it will be on their website in a few days, they are pretty good with these things.

They'd need to get their skates on, the offer expires on the 19th November (Friday).

I hold LLPC with iWeb and Interactive Investor and neither has signalled this corporate action.

[Laughton]

Happy to be shot down if I've got this wrong but my understanding is that for retail holders there are 2 expiry dates:

November 19th - means you get settlement on November 30th with no accrued because you already get your dividend to that date separately

December 9th - means you get settlement on December 15th plus a small amount of accrued to take account of you holding since November 30th. You will have already received the half year dividend to November 30th separately on that date

[digitaria]

Apologies, I hadn't seen the alternative expiry date, it is probably I who should be shot down.

Still surprised that the brokers haven't notified this within a day or two of the announcement.

[Holts]

I have sufficient to be classed as not retail , if I understand the wording correctly, but interactive investor have no advice as yet .

[yieldhog]

Laughton
Thanks for the post. I too had missed seeing the second settlement date. That makes sense of the 0.38118% additional interest payment i.e. (4.625% / 182) x 15 days = 0.38118%
Y

[BobGe]

I'll be tendering my LLPC & LLPD - sad to see them go, had them since the GFC and topped up during the pandemic dip.
Can only see their price trending down with inflation and BoE rates rising and was minded to sell them recently anyway.

If/when these rates start trending the other way I'll buy NWBD back as they have more bullet proof terms IIRC?

Remember that they existed as HBOS prefs prior to that and they were trading at decent levels then even with bank base rates around 5%. Hence any price drop may be short term as the yield is still relatively decent. Why not wait and see the result of the early closing date (institutional) offer before tendering? NWBD are trading higher due to their betters terms and because Lloyds have blotted their copybook. The more LLPC, D, E, that are tendered the more people will be looking for a home for the proceeds which may push NWBD even higher.

[XFool]

Anyone actually heard any information about the tender from their broker yet? I have a feeling this might sail straight through without touching the sides...

If held in an ISA and these are at some point later delisted, then I guess they would have to be moved outside the ISA.

[rcrumble]

Anyone actually heard any information about the tender from their broker yet? I have a feeling this might sail straight through without touching the sides...

From AJ Bell, yes. Waiting on ii.

Worth noting: the deadlines given by AJ Bell seem to be 3 days earlier than the ones given in the offer document - seems a long time for them to collate the responses. The "early" deadline, to receive proceeds by 30 November, is today ("before 16 November").

"Please note that the deadline to elect for retail holders is 6 December 2021, you are considered a retail holder if you hold less than GBP100,000.00 par value in this security. Please be advised if you elect to tender your shares before 16 November 2021, the cash proceeds are expected to be credited on or around 30 November 2021."

[daveh]

Anyone actually heard any information about the tender from their broker yet? I have a feeling this might sail straight through without touching the sides...

If held in an ISA and these are at some point later delisted, then I guess they would have to be moved outside the ISA.

Not a peep out of HSDL where I hold some LLPC. You think they'd know about the tender offer of their own prefs!

[Laughton]

Popped up in iDealing account today with deadline of December 6th.

Still haven't decided - minded to pass on the offer (where else to put the money if I accept)?

[Breelander]

Anyone actually heard any information about the tender from their broker yet? I have a feeling this might sail straight through without touching the sides...

Never mind the brokers, I actually hold LLPD as certificates. I'm registered on Shareview to manage my certificates online. Not heard a thing, either as s notification in the portfolio page or by email. I also hold some RDSB certificates, and for that I DID get notified immediately about today's corporate action, both by email and on the portfolio page:

Vote online
Click on a meeting description below to submit your proxy instruction online

Royal Dutch Shell plc General Meeting 10 December 2021 - B Shares

[Breelander]

Anyone actually heard any information about the tender from their broker yet? I have a feeling this might sail straight through without touching the sides...

Never mind the brokers, I actually hold LLPD as certificates. I'm registered on Shareview to manage my certificates online. Not heard a thing, either as a notification in the portfolio page or by email....

I have now phoned Equiniti for clarification. Apparently for a retail certificate holder like myself the tender offer documents are to be sent by post to my registered home address on 19th November, which is why I have not heard anything yet. I suspect something similar may apply to sending the documents to your brokers.

[XFool]

...OK. Thanks Breelander.

I think I'll wait a bit and then phone them. Do you actually hold Lloyds ordinary shares in the same account? I don't and never see any news on the RNS feed just for the Prefs, I was wondering if this could affect things.

Oh sorry! You have certificates. Mind you I also hold my separate 400 via the Lloyds/Equinity account.

[yieldhog]

Relating to my LLPC, from ii today just after 5 p.m. in a secure message:

"....... once we have complete,
true and accurate details ........"

Y

[BobGe]

I have sufficient to be classed as not retail , if I understand the wording correctly, but interactive investor have no advice as yet .

"A "Retail Holder" is a holder of Preference Shares (a) who holds less than £100,000 in aggregate liquidation preference of the Preference Shares of the relevant Series, (b) whose ordinary activities do not involve that person buying, selling, subscribing for or underwriting instruments such as the Preference Shares for the purpose of a business carried on by that person, and (c) who it is reasonable to expect will not carry on the activities described in (b) above for the purposes of a business carried on by that person."


The timeline:
19 November 2021 1.00 p.m. London time = General Expiration Deadline (the 'Institutional' deadline)
22 November 2021 = Announcement of Results following the General Expiration Deadline

9 December 2021 1.00 p.m., London time = Retail-Only Expiration Deadline
10 December 2021 = Announcement of Results following the Retail-Only Expiration Deadline

[Holts]

Relating to my LLPC, from ii today just after 5 p.m. in a secure message:

"....... once we have complete,
true and accurate details ........"

Y

II ,

Have not provided the option to accept by the 19 and be paid earlier .

[Holts]

I have sufficient to be classed as not retail , if I understand the wording correctly, but interactive investor have no advice as yet .

"A "Retail Holder" is a holder of Preference Shares (a) who holds less than £100,000 in aggregate liquidation preference of the Preference Shares of the relevant Series, (b) whose ordinary activities do not involve that person buying, selling, subscribing for or underwriting instruments such as the Preference Shares for the purpose of a business carried on by that person, and (c) who it is reasonable to expect will not carry on the activities described in (b) above for the purposes of a business carried on by that person."


The timeline:
19 November 2021 1.00 p.m. London time = General Expiration Deadline (the 'Institutional' deadline)
22 November 2021 = Announcement of Results following the General Expiration Deadline

9 December 2021 1.00 p.m., London time = Retail-Only Expiration Deadline
10 December 2021 = Announcement of Results following the Retail-Only Expiration Deadline

Thanks , presumably we don’t get to participate in the 19th deadline even if holding is sufficient which is annoying .

[BobGe]

Thanks , presumably we don’t get to participate in the 19th deadline even if holding is sufficient which is annoying .

I guess it depends on how you hold. As lots of folk would hold via a nominee it would seem likely in many cases that the nominee's pooled holdings would exceed the £100k threshold but unlikely they would be excuded from tendering. On the other hand, should you have a segregated account with the nominee, a crest a/c or hold in certificated form, the £100k may apply.

Perhaps you might like to keep them anyway if the initial take up is poor..., unless you have a better proposition to hand.

I note that there doesn't seem to be any general dip in similar securities elsewhere, so I presently assume the market isn't sensing this to be a precursor of anything odious (which might then set a precedent).