RL Finance accepts tenders for £153.92 million 6.125% step-up notes

By Jennifer Chiou

New York, Nov. 26 - RL Finance Bonds plc said it accepted tenders for £153,923,000 of its £400 million of 6.125% perpetual cumulative step-up subordinated notes guaranteed on a subordinated basis by Royal London Mutual Insurance Society Ltd.

The offer ended at 11 a.m. ET on Nov. 25.

The purchase price will be £1,010 per £1,000 nominal amount plus accrued interest.

As noted, the offer was part of the guarantor's active management of the Royal London group's capital structure and was conditioned on financing because the guarantor was looking to refinance the notes with a new issue of solvency II-compliant tier 2 capital.

The offer was conditioned on the completion of a fixed-rate reset callable guaranteed subordinated notes issue due 2043 by RL Finance Bonds No. 2 plc.

Barclays Bank plc (attn.: liability management group, 44 20 7773 8990, eu.lm@barclays.com), BofA Merrill Lynch (attn.: John Cavanagh, 44 20 7995 3715 or john.m.cavanagh@baml.com, or attn.: Karl Bystedt Wikblom, 44 20 7996 0867 or karl.bystedtwikblom@baml.com) and HSBC Bank plc (attn.: liability management group, 44 20 7992 6237 or liability.management@hsbcib.com) were the dealer managers. Lucid Issuer Services Ltd. (44 20 7704 0880, fax 44 20 7067 9098, attn.: Yves Theis/Thomas Choquet or e-mail rl@lucid-is.com) was the tender agent.

Royal London offers life insurance, pensions, savings products, investment products, property/casualty insurance, credit insurance and investment management. The London-based company launched the offer on Nov. 14.

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