By Angela McDaniels
Tacoma, Wash., June 15 – QBE Insurance Group Ltd. priced $524.14 million of 30-year subordinated notes, according to a company news release.
The notes will be issued to Hongkong and Shanghai Banking Corp. Ltd. in exchange for fixed-rate reset guaranteed exchangeable subordinated callable notes due 2041 that HSBC is acquiring in a tender offer. It is QBE’s understanding that HSBC will sell the new notes to investors.
The initial interest rate is 5.875%. The interest rate will be reset on June 17, 2016 and June 17, 2036 to a rate equal to the then mid-market swap rate plus 439.5 basis points. The company has the option to defer payment of interest in certain circumstances.
The notes are redeemable at par on June 17, 2016 and June 17, 2036.
The notes will qualify as tier 2 capital under the Australian Prudential Regulation Authority’s capital adequacy framework. If the authority determines the company to be non-viable, the notes will convert into QBE ordinary shares. The conversion rate would be a 1% discount to the volume-weighted average price of the stock as determined by the authority.
QBE is a Sydney, Australia-based insurance company.
| Issuer: | QBE Insurance Group Ltd.
|
| Issue: | Subordinated notes
|
| Amount: | $524,124,000
|
| Maturity: | June 17, 2046
|
| Coupon: | 5.875%, reset to mid-market swap rate plus 439.5 bps on June 17, 2016 and June 17, 2036
|
| Price: | Par
|
| Call option: | At par on June 17, 2016 and June 17, 2036
|
| Pricing date: | June 15
|
| Settlement date: | June 17
|
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.
