Phoenix Group to buy £178.39 million of 5¾% bonds at 114.049 in offer

By Susanna Moon

Chicago, May 4 – Phoenix Group Holdings said investors had tendered £178.39 million of its £300 million 5¾% senior bonds due 2021 in the offer that ended 11 a.m. ET on May 3.

Phoenix accepted for purchase all of the tendered notes at a purchase price of 114.049%, or £114,049 per £100,000 principal amount, according to a company update on Thursday.

Pricing was set using the 1½% U.K. Treasury Gilt due January 2021 plus 190 basis points at 6 a.m. ET on May 4 for a benchmark rate of 0.276% and purchase yield of 2.188%.

The company will also pay accrued interest.

After settlement May 5, there will be £121.61 million of the notes left outstanding.

The tender offer began April 25.

The offer was contingent on the issue of sterling-denominated 4 1/8% tier 3 notes due 2022 to be consolidated with the company's existing £300 million 4 1/8% tier 3 notes due 2022.

The company priced another £150 million of the 4 1/8% notes on April 25, the release added.

Citigroup Global Markets Ltd. (+44 20 7986 8969 or liabilitymanagement.europe@citi.com), J.P. Morgan Securities plc (+44 20 7134 2468 or emea_lm@jpmorgan.com), Lloyds Bank plc (+44 20 7158 2720, +44 20 7158 1719 or liability.management@lloydsbanking.com), Merrill Lynch International (+44 20 7996 5420 or e-mail DG.LM_EMEA@baml.com) and Royal Bank of Scotland plc (+44 20 7678 5405 or e-mail liabilitymanagement@natwestmarkets.com) are the dealer managers. Lucid Issuer Services Ltd. (+44 20 7704 0880 or phoenix@lucid-is.com) is the tender agent.

Phoenix Group is a London-based consolidator of closed life funds.

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