Pension Insurance accepts £300 million of tendered 2024, 2026 notes

By Marisa Wong

Los Angeles, Nov. 13 – Pension Insurance Corp. plc announced the final results of its separate invitations to holders of its outstanding £300 million 6.5% subordinated notes due July 3, 2024 (ISIN: XS1083983376) and £250 million 8% subordinated notes due Nov. 23, 2026 (ISIN: XS1523966197) to tender their notes for purchase for cash.

The company confirmed on Monday that the final acceptance amount is £300 million, equal to the maximum acceptance amount set at the start of the offers on Nov. 6.

The company will accept £97,374,000 of tendered 2024 notes with a proration factor of 51.779% applied and all £202,626,000 of tendered 2026 notes without proration.

The purchase price for the 2024 notes was fixed at 100.25, and the purchase price for the 2026 notes was determined to be 104.265, calculated based on the 0.375% U.K. Treasury Gilt due Oct. 22, 2026 and a purchase spread of 200 basis points. Pricing for the 2026 notes was set at 7 a.m. ET on Nov. 13.

The company will also pay accrued interest.

The tender offer expired at 11 a.m. ET on Nov. 10.

Settlement is slated for Nov. 14.

After settlement of the offers and cancellation of the relevant notes, £202,626,000 of the 2024 notes and £47,374,000 of the 2026 notes will remain outstanding.

The tender offer is subject to a new financing condition.

The company is offering a new series of sterling-denominated fixed-rate tier 2 notes under its £3 billion euro medium-term note program, subject to market conditions.

Holders who wish to subscribe for new notes in addition to tendering their existing notes may be given priority in the allocation of the new notes, as previously noted.

The dealer managers for the tender offer are Barclays Bank plc (+44 20 3134 8515; eu.lm@barclays.com); Citigroup Global Markets Ltd. (+44 20 7986 8969; liabilitymanagement.europe@citi.com); HSBC Bank plc (+44 20 7992 6237; LM_EMEA@hsbc.com) and J.P. Morgan Securities plc (+44 20 7134 2468; liability_management_EMEA@jpmorgan.com).

Kroll Issuer Services Ltd. (+44 20 7704 0880; pic@is.kroll.com; https://deals.is.kroll.com/pic) is the tender agent.

The insurance company is based in London.

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