By Andrea Heisinger
New York, May 18 - QBE Capital Funding III and IV sold $1 billion of 7.25% 30-year subordinated lower tier 2 capital bonds at par, according to a market source and a press release from the company.
The bonds (Baa1/BBB+) have a fixed interest rate until May 24, 2021 and then it resets to mid-swaps plus 405 basis points. The rate resets again on May 24, 2031.
The bonds are callable on or after May 24, 2016 and again on May 24, 2021, May 24, 2031 and May 24, 2041.
There is an exchange option into similar debt in the case of QBE's insolvency or at QBE's election.
The Rule 144A bonds are guaranteed by QBE Insurance Group Ltd.
Bookrunners were Barclays Capital Inc. and J.P. Morgan Securities LLC.
The insurance company is based in Sydney, Australia.
| Issuer: | QBE Capital Funding III, IV
|
| Guarantor: | QBE Insurance Group Ltd.
|
| Issue: | Subordinated lower tier 2 capital bonds
|
| Amount: | $1 billion
|
| Maturity: | May 24, 2041
|
| Bookrunners: | Barclays Capital Inc., J.P. Morgan Securities LLC
|
| Coupon: | 7.25% until May 24, 2021, then mid-swaps plus 405 bps. Resets again on May 24, 2031
|
| Price: | Par
|
| Yield: | 7.25% until May 24, 2021, then mid-swaps plus 405. Resets again on May 24, 2031
|
| Call: | On or after May 24, 2016. Option on May 24 of 2021, 2031, 2041
|
| Distribution: | Rule 144A
|
| Trade date: | May 17
|
| Settlement date: | May 24
|
| Ratings: | Moody's: Baa1
|
| Standard & Poor's: BBB+
|
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