Chicago, Dec. 12 – Virgin Money UK plc listed £350 million of 11% fixed-rate reset perpetual subordinated contingent convertible notes (Ba1//BB), according to an offering document.
The notes priced at par.
The initial coupon will reset to Gilts plus 699.3 basis points for the first time on June 8, 2029. The rate will reset on five-year anniversaries thereafter.
The notes are callable at par plus any accrued interest from Dec. 8, 2028 to the first reset date and then during the six months before any reset date thereafter.
Goldman Sachs International, J.P. Morgan Securities plc, Merrill Lynch International and NatWest Markets plc were the joint lead managers.
Proceeds will be used for general corporate purposes, including down-streaming funds to the bank in the form of subordinated debt intended to qualify as additional tier 1 capital.
Virgin Money is a Newcastle, U.K.-based bank holding company.
| Issuer: | Virgin Money UK plc
|
| Amount: | £350 million
|
| Issue: | Fixed-rate reset perpetual subordinated contingent convertible notes
|
| Maturity: | Perpetual
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| Bookrunners: | Goldman Sachs International, J.P. Morgan Securities plc, Merrill Lynch International and NatWest Markets plc
|
| Trustee: | Citicorp Trustee Co. Ltd.
|
| Counsel to issuer: | Clifford Chance LLP
|
| Counsel to underwriters: | Linklaters LLP
|
| Coupon: | 11% initial rate; resets to Gilts plus 699.3 bps on June 8, 2029 then at five-year intervals thereafter
|
| Price: | Par
|
| Yield: | 11%
|
| Call features: | At par from Dec. 8, 2028 to June 8, 2029; at par during six-month periods before reset dates
|
| Trade date: | Dec. 6
|
| Settlement date: | Dec. 8
|
| Ratings: | Moody’s: Ba1
|
| Fitch: BB
|
| Distribution: | Regulation S
|
| ISIN: | XS2718145779
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