Beazley tenders for £25 million fixed-to-floaters by Dutch auction

By Susanna Moon

Chicago, Oct. 17 - Beazley Group Ltd. said it began a cash tender offer for up to £25 million of its outstanding £150 million fixed-to-floating subordinated notes due 2026.

The issuer will pay minimum price of 92% of par, with pricing to be set using a modified Dutch auction procedure.

Holders also will receive accrued interest up to but excluding the settlement date of Oct. 29.

The tender offer will end at noon ET on Oct. 24.

Funding for the offer will come from existing resources, according to a company press release.

There is £119,993,000 of the notes outstanding.

J.P. Morgan Securities plc (+44 207 134 2468 / +44 207 134 3437, attn.: FIG syndicate / liability management, email FIG_Syndicate@jpmorgan.com / emea_lm@jpmorgan.com) is the dealer manager. Lucid Issuer Services Ltd. (+44 20 7704 0880, attn.: Thomas Choquet / Victor Parzyjagla, email: beazley@lucid-is.com) is the tender agent.

The purpose of the offer is to use excess liquidity to reduce the issuer's long-term debt obligations by tendering for some of the notes at a discount to par, while also reducing its interest expense, the release noted.

Beazley is the Dublin-based parent company of specialist insurance businesses with operations in Europe, the United States, Asia and Australia.

© 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.