Metro Bank negotiates with bondholders and shareholders to obtain financing

2023-10-08 19:15:57

Metro Bank Holdings Plc is in talks with bondholders and shareholders about obtaining a financing package with the aim of reaching any agreement before Monday, according to a person familiar with the matter.

Bondholders have entered into talks with Britain’s Metro Bank about an equity infusion by existing investors that will be carried out alongside a debt restructuring, said the person familiar with the matter, who requested anonymity for the privacy of the discussions.

The offering would extend the maturity of outstanding senior debt and convert the subordinated debt into equity. Shareholders will need to inject new equity to avoid a severe dilution of ownership.

Things are subject to change, and an agreement may not be reached. In addition to trying to reach an agreement with equity and debt holders, Metro Bank continues to consider other options, such as selling mortgage assets in order to free up capital.

A Metro Bank spokesman declined to comment on the matter, while Jaime Gilinsky, the bank’s largest shareholder, could not be reached for comment. Representatives from PJT, which advises bondholders, also declined to comment.

Carlyle is considering acquiring the British Metro Bank

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