28 June – LAWFUEL – The Law News Network – Linklaters has advised Barclays Capital as lead underwriter on Barclays Bank’s issuance of 100,000 dollar preference shares in the form of American Depositary Shares (“ADSs”) and 75,000 sterling preference shares. The funds raised were US$1 billion and £750 million in gross proceeds to be used to finance part of Barclays’ acquisition of the South African bank, Absa Group Limited.
Barclays offered and sold 100,000 ADSs at a price of US$10,000 per ADS and 75,000 sterling preference shares at a price of £9,956 per sterling preference share. The ADSs (each representing one dollar preference share) were offered to institutions in the United States and Europe in an SEC registered transaction. The dollar preference shares are non-cumulative callable dollar-denominated shares, with dividends initially accruing at 6.3 per cent per year. The sterling preference shares were offered to institutional investors in Europe. The shares are non-cumulative callable sterling-denominated shares, with dividends initially accruing at 6 per cent per year.
Linklaters acted as UK and US counsel to Barclays Capital and the other underwriters. The deal became public on 1 June 2005 (ADSs) and 8 June 2005 (Sterling Preference Shares).
Vinay Samani, capital markets partner, commented:
“We are delighted to have assisted Barclays in successfully executing this important financing. Preference share issuance by UK banks is on the increase after recent changes in the regulatory treatment of capital instruments and these offerings into the European and US markets set a benchmark. It was very pleasing to be able to field a multi-disciplinary team of English and US lawyers operating out of both London and New York.”
The Linklaters team based in London and New York was led by Vinay Samani and included David Ludwick, John Buick-Constable, Volinka Reina, Alison Higgins (Capital Markets, London), Sarah Wiggins, Philip Heyes, Mike Bienenfeld, Jan-Jaap Baer, Chris Brierly (Corporate, London), Bill Hobbs, (Corporate, New York), Charles Hellier, Elizabeth Conway, Ian Hunter (Tax, UK), Stephen Land, Valerie Leipheimer, Francisco Duque (Tax, US), Peter Bevan, Susan Gill (Financial Markets Group, UK), Victoria Love (Trusts) and John Turnbull, Emma Horton, Lisa Richardson (Litigation, UK).