Glitnir Holdco ehf. (the “Issuer”)
EUR 1,585,774,666 Amortising Zero-Coupon (Remaining balance EUR 899,139,177)
Convertible Notes due 2030 (the “Notes”)
Optional Cash Redemption Notice
This notice is made to holders of the Notes (hereafter, the “Noteholders”) pursuant to Condition 6.3 of the Terms and Conditions of the Notes (the “Conditions”) and is published in accordance with Article 21 of the Conditions.
Capitalised terms used but not defined in this notice shall have the meanings given to them in the Conditions.
The Issuer hereby notifies the Noteholders that it will effect an optional redemption by redeeming the Notes (in part) in cash on 29 June 2016. The Issuer is providing the following information pursuant to Condition 6.3(B) of the Conditions in connection with such redemption:
i. Ruling from the Supreme Court of Iceland: On 31 May 2016 the Supreme Court of Iceland ruled in the dispute between Lánasjóður sveitarfélaga ohf. and Glitnir. The dispute concerned a claim submitted in the winding-up proceedings of Glitnir on behalf of Lánasjóður sveitarfélaga ohf. The Court ruled in favor of Glitnir and confirmed Glitnir's recognision of the claim. All the cash set aside in relation to the dispute will now be distributed to Glitnir’s noteholders. The cash paid into special cash account at composition in December 2015 was EUR 2,276,398, GPB 957,983, USD 3,201,184 and NOK 10,798,661. In addition to the composition payment two payments have been made into the account in relation to payments under the Note, for the total amount of EUR 1,443,601.
ii. The Euro Equivalent Redemption Funds to be distributed in relation to the Supreme Court ruling is EUR 9,008,000.
With reference to announcement on Glitnir website on 27 May 2016 the total estimated amount to be paid on 29 June 2016 will therefore increase from EUR 14,500,000 to EUR 23,508,000.
The Issuer will provide a further notification on 27 June 2016 (which is the Optional Cash Redemption Second Notification Date). This will confirm the final amount of Euro Equivalent Available Optional Redemption Funds which will be used to redeem the Notes in cash, the aggregate principal amount of the Notes that will be outstanding immediately following the Optional Redemption Date of 27 June 2016 and the other information required under Condition 6.3(C).
Reykjavík, 31 May 2016
On behalf of Glitnir HoldCo ehf.
Ingólfur Hauksson, Chief Executive Officer