163(1) did not apply to the contingent convertible
debt, even though the debt instrument will be paid in stock on conversion or may be paid on exercise of a put by the holder (at the issuer's option).
The company has offered USD500m of contingent convertible
senior notes due 2038.
Under the plan, the four will have to issue new shares to achieve a core tier 1 capital solvency ratio of at least 6% and contingent convertible
bonds, or CoCos, to boost the ratio to 9%.
Net proceeds from the offering will be used to repurchase and cancel 6,857,000 shares of contingent convertible
preferred stock owned by AIG.
Combined with separate tender offers for certain other series of senior notes and contingent convertible
senior notes that expired previously, and open market purchases of certain series of contingent convertible
senior notes, Chesapeake has retired an aggregate of $1,664,449,000in principal amountof dollar-denominated senior notes and contingent convertible
senior notes and [euro]255,835,000 in principal amount of euro-denominated senior notes in 2011.
5% Contingent Convertible
Senior Notes due 2037 (the "2037 Notes") validly tendered and not validly withdrawn for an aggregate consideration of approximately $600.
A 25 percent limit on investments in convertible bonds will also be removed, although there is a 10 percent cap on contingent convertible
Under the plan, banks will have to issue new common shares to achieve a core Tier 1 capital solvency ratio of at least 6% and contingent convertible
bonds or CoCos to boost the ratio to 9%.
The bank has started collecting orders for the inaugural Swiss franc issue of high-trigger contingent convertible
securities (CoCos) and said the minimum size of the deal would be CHF250m (USD275m/EUR207m).
Next week, international regulators are to meet to review whether CoCos, or contingent convertible
bonds, may count towards capital requirements for systemically important banks.
OKLAHOMA CITY -- Chesapeake Energy Corporation (NYSE:CHK) today announced the expiration and final results of its previously announced cash tender offers to purchase a portion of the outstanding principal amount of each series of its contingent convertible
senior notes listed in the table below (collectively, the "Convertible Notes").
Woori Bank stated that it plans to issue contingent convertible
, or CoCo, bonds worth $500 million, looking to boost its capital ratio ahead of its next privatization attempt.