By Cristal Cody
Tupelo, Miss., May 5 – QBE Insurance Group Ltd. priced $500 million of 5.875% perpetual additional tier 1 contingent convertible capital securities (Baa2/BBB-) on Tuesday, according to a market source.
Initial price talk was at the 6.5% area.
The interest rate will reset after the fixed-rate period to Treasuries plus 551.3 basis points.
The notes are callable on May 12, 2025.
Citigroup Global Markets Inc., HSBC Securities (USA) Inc. and J.P. Morgan Securities LLC were the active bookrunners. Credit Agricole Securities (USA) Inc. was the passive bookrunner.
The global insurer is based in Sydney, Australia.
| Issuer: | QBE Insurance Group Ltd.
|
| Amount: | $500 million
|
| Description: | Perpetual additional tier 1 contingent convertible capital securities
|
| Maturity: | Perpetual
|
| Bookrunners: | Citigroup Global Markets Inc., HSBC Securities (USA) Inc. and J.P. Morgan Securities LLC (active); Credit Agricole Securities (USA) Inc. (passive)
|
| Coupon: | 5.875%; resets to Treasuries plus 551.3 bps
|
| Call feature: | May 12, 2025
|
| Trade date: | May 5
|
| Ratings: | Moody’s: Baa2
|
| S&P: BBB-
|
| Price guidance: | 6.5% area
|
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