Aviva gives preliminary results of tender offers for eight note series

By Taylor Fox

New York, March 12 – Aviva plc announced the indicative results of its capped tender offers to purchase eight series of notes, according to a news release.

As of the 11 a.m. ET March 11 expiration time, Aviva received £2 billion of tendered notes, so it has increased the maximum acceptance level to £1 billion from £800 million.

Aviva plans to accept the following amounts of tendered notes with priority level 1:

• All €185,127,000 tendered of the €500 million outstanding 0.625% senior notes due Oct. 27, 2023 (ISIN: XS1509003361) with pricing based on a purchase yield of negative 0.45%;

• All €285,998,000 tendered of the €750 million outstanding 1.875% senior notes due Nov. 13, 2027 (ISIN: XS1908273219) with pricing based on the 2027 senior notes interpolated mid-swap rate plus 10 basis points;

• None of the £700 million outstanding 6.125% tier 2 reset notes due Nov. 14, 2036 (ISIN: XS0138717441). Pricing would have been based on the 1.5% UK Treasury Gilt due July 22, 2026 plus 130 bps;

• All €348,818,000 tendered of the €650 million outstanding 6.125% tier 2 reset notes due July 5, 2043 (ISIN: XS0951553592) with pricing based on a purchase yield of negative 0.1%;

• £298.01 million of the £800 million outstanding 6.125% fixed-rate perpetual reset subordinated notes with a first call date on Sept. 29, 2022 (ISIN: XS0177447983) at a non-binding scaling factor of 53.38%, to be repurchased at 107.95; and

• None of the £500 million outstanding 8.25% fixed rate subordinated notes due April 21, 2022 (ISIN: XS0620022128) issued by Friends Life Holdings plc (formerly known as Friends Provident Holdings (UK) plc) to be repurchased at 108.8.

Aviva does not intend to accept any tenders of the following notes with priority level 2:

• €700 million outstanding 3.875% tier 2 reset notes due July 3, 2044 (ISIN: XS1083986718), which would have been priced using the 2044 tier 2 notes interpolated mid-swap rate plus 60 bps; and

• €900 million outstanding 3.375% tier 2 reset notes due Dec. 4, 2045 (ISIN: XS1242413679), which would have been priced based on the 2045 tier 2 notes interpolated mid-swap rate plus 95 bps.

Pricing was scheduled to be determined at 9 a.m. ET on March 12.

Interest will also be paid for notes accepted for purchase.

Settlement is planned for March 16.

Dealer managers for the offer are Citigroup Global Markets Ltd. (+44 20 7986 8969, liabilitymanagement.europe@citi.com) and J.P. Morgan Securities plc (+44 207 134 2468, liability_management_EMEA@jpmorgan.com).

Lucid Issuer Services Ltd. is the tender agent (+44 20 7704 0880, aviva@lucid-is.com).

Aviva is a life insurance provider based in London.

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