By Marisa Wong
Morgantown, W.Va., May 19 – QBE Insurance Group Ltd. said it will exchange £291,025,000 of existing notes due 2041 issued by QBE Capital Funding IV Ltd. for new notes due 2042.
On May 4, the company launched an invitation to holders of the £325 million fixed-rate reset guaranteed exchangeable subordinated callable notes due 2041 to tender their notes in exchange for new sterling-denominated subordinated notes due 2042. The offer expired at noon ET on May 17.
On Thursday, QBE announced it will issue £327,186,000 of the new notes at an issue price of £100,000 each.
The company priced the 2042 notes with an initial coupon of 6.115%.
The new notes will be issued by QBE under its recently launched $4 billion medium-term note program. Settlement is slated for May 24.
The exchange price was calculated using the interpolated mid-swap rate and an exchange spread of 365 basis points, as previously reported.
HSBC Bank plc (+44 (0)20 7992 6237, attn.: liability management group, liability.management@hsbcib.com) and Morgan Stanley & Co. International plc (+44 (0)20 7677 5040, attn.: liability management group, liabilitymanagementeurope@morganstanley.com) are the lead dealer managers for the Regulation S offer. National Australia Bank Ltd. is also a dealer manager and the bookrunner. Lucid Issuer Services Ltd. is the exchange agent.
“We were particularly satisfied with the level of investor participation in our tender exchange transaction, with the new notes further enhancing the quality of the group’s regulatory capital position. We were also extremely pleased with the pricing levels achieved on the new bonds,” Pat Regan, chief financial officer of QBE, commented in a press release.
QBE is a Sydney, Australia-based insurance company.
New notes
| Issuer: | QBE Insurance Group Ltd.
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| Issue: | Subordinated notes
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| Amount: | £327,186,000
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| Maturity: | May 24, 2042
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| Coupon: | 6.115%; reset to mid-market swap rate plus 500 bps beginning May 24, 2022 and every five years after that
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| Price: | £100,000 each
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| Bookrunner: | National Australia Bank Ltd.
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| Pricing date: | May 18
|
| Settlement date: | May 24
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