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Royal London starts tender offer for subordinated notes
Chicago, May 15 – Royal London Mutual Insurance Society Ltd. started a tender offer for the £400 million outstanding 6.125% reset callable guaranteed subordinated notes due 2043 (ISIN: XS0998135718) that were issued by RL Finance Bonds No. 2 plc, according to an announcement document.
The notes have a first call date of Nov. 30, 2023. If the notes are not redeemed on that date, the coupon will reset to the five-year Gilt plus 432.1 basis points.
The company is offering to pay par for the notes. Accrued interest will also be paid.
The offer will have a maximum acceptance amount that will be set later based on the amount of a new offering of notes from RL Finance Bonds No. 6 plc. The maximum amount will be announced after the new contingent convertible notes have priced.
The purpose of the offer is to increase Royal London’s financial flexibility by establishing access to the restricted tier 1 capital market and create additional tier 2 capital headroom, while offering a liquidity event for current holders of the notes.
Tenders may be prorated.
Tender instructions are due by 11 a.m. ET on May 22.
Results will be announced on May 23 and settlement is expected for May 25.
The dealer managers are BNP Paribas (+33 1 55 77 78 94, liability.management@bnpparibas.com), HSBC Bank plc (+44 20 7992 6237, LM_EMEA@hsbc.com) and Merrill Lynch International (+44 20 7996 5420, DG.LM-EMEA@bofa.com).
Kroll Issuer Services Ltd. is the tender agent (+44 20 7704 0880, royallondon@is.kroll.com, https://deals.is.kroll.com/royallondon).
Royal London offers life insurance, pensions, savings products, investment products, property/casualty insurance, credit insurance and investment management. The company is based in London.
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