Perpetuated Subordinated Bond

11 May 2007 12:48

Cheltenham & Gloucester PLC11 May 2007 Cheltenham & Gloucester plc 11.75% Perpetual Subordinated Bonds Lloyds TSB Bank plc ("Lloyds TSB") and Cheltenham & Gloucester plc ("C&G")announced today that they are currently considering arrangements under which,pursuant to a banking business transfer scheme to be proposed under Part VII ofthe Financial Services and Markets Act 2000, the banking business of C&G,including the savings and mortgage balances of C&G, together with related rightsand liabilities, would be transferred to Lloyds TSB. It is proposed that the11.75% Perpetual Subordinated Bonds of C&G (the "Bonds") would be transferredunder the scheme, and accordingly the Bonds would become, upon the transferbecoming effective, subordinated bonds of Lloyds TSB. Lloyds TSB wouldthereafter be liable for all future payments of principal and interest under theBonds to the holders thereof and would, as issuer thereunder, comply with allthe terms and conditions of the Bonds. The rights of each holder of Bonds wouldthereafter be exercisable against Lloyds TSB and not C&G, but would otherwiseremain the same. If effected, the proposed transfer would take place later in 2007. The proposalwould be subject to, among other things, court approval of the scheme. This information is provided by RNS The company news service from the London Stock Exchange