Some Anglo Irish Bank subordinated bondholders are to take an 80% writedown on the original value of their holding.
According to the nationalised bank, creditors holding about €307m of debt due in 2014 and nearly €460m due in 2016 have agreed to swap their debt for floating rate notes due in 2011 and €5m in cash.
The take-up rate among bondholders was 95% for the 2014 note and 92% for the 2016 paper. Those who reject the offer, to be settled on Thursday this week, will get one cent per €1,000 of notes held.
The exchange offer means Anglo is making holders of €1.6 billion in debt bear losses and slightly reduces the burden on Irish taxpayers in bailing out the bank.
