9th Jul 2007 15:57
Cheltenham & Gloucester PLC09 July 2007 LLOYDS TSB/CHELTENHAM & GLOUCESTER PLC Cheltenham & Gloucester plc 11.75% Perpetual Subordinated Bonds Lloyds TSB Bank plc ("Lloyds TSB") and Cheltenham & Gloucester plc ("C&G")announced today that they have now agreed arrangements, originally announced on11 May 2007, under which, pursuant to a banking business transfer scheme("Scheme") to be proposed under Part VII of the Financial Services and MarketsAct 2000, the banking business of C&G, including the savings and mortgagebalances of C&G together with related rights and liabilities, will betransferred to Lloyds TSB. The 11.75% Perpetual Subordinated Bonds of C&G (the"Bonds") will be transferred under the Scheme, and accordingly the Bonds willbecome, upon the Scheme becoming effective, subordinated bonds of Lloyds TSB.Lloyds TSB will thereafter be liable for all future payments of principal andinterest under the Bonds to the holders thereof and will, as issuer thereunder,comply with all the terms and conditions of the Bonds. The rights of each holderof Bonds will thereafter be exercisable against Lloyds TSB and not C&G, but willotherwise remain the same. The transfer is subject to, among other things, court approval of the Scheme.Lloyds TSB and C&G will tomorrow commence the court process to seek suchapproval, and are intending that the transfer pursuant to the Scheme becomeeffective on 1 October 2007. Lloyds TSB and C&G will post a notice on theirwebsites at "www.lloydstsb.com" and "www.cheltglos.co.uk" respectively as soonas the Scheme has become effective. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
Lloyds Bk.perpLloyds