Anglo Irish makes exchange offer to sub debt holders

Anglo Irish has unveiled details of an exchange offer for holders of three series of subordinated bonds with a combined principal outstanding of €1.575 billion. Under the terms of the offer, bondholders will receive new government-guaranteed bonds due to mature at the end 2011, paying a coupon of 375 basis points over three-month Euribor.

In the offer memorandum, Anglo Irish justified the move on the grounds it will “create additional core tier 1 capital and….optimise and simplify the capital st