Phoenix Life ups consents fee for 7¼% subordinated notes to 500 bps

By Toni Weeks

San Luis Obispo, Calif., Dec. 18 – Phoenix Life Ltd. said it increased the instruction fees it will pay under the company’s consent solicitation for its £200 million of 7¼% undated subordinated notes to 500 basis points.

As previous reported, the issuer is seeking to amend the trust deed for the notes to remove any uncertainty as to whether they qualify as tier 2 capital. Phoenix Life believes the notes do qualify but wants to make sure the notes are fully consistent with all the requirements. The securities were originally issued by Scottish Mutual Assurance plc in 2001.

Holders who submitted their instructions by the early deadline, 11 a.m. ET on Dec. 12, will now receive the 500 bps fee. Those who submit after the early deadline but before the expiration, 5 a.m. ET on Dec. 19, will also receive 500 bps. When the consent solicitation was announced on Dec. 1, the instruction fees were to be 50 bps for the early fee and 20 bps for the late fee.

As previously noted, a meeting of noteholders will be held at 5 a.m. ET on Dec. 23.

HSBC Bankplc (+44 20 7992 6237 or liability.management@hsbcib.com) and Royal Bank of Scotland plc (+44 20 7085 9972 or liability.management@rbs.com) are the solicitation agents. Lucid Issuer Services Ltd. (+44 20 7704 0880 or phoenixlife@lucid-is.com) is the tabulation agent.

Phoenix Life is the life insurance business of Birmingham, England-based Phoenix Group Holdings, which specializes in managing closed life and pension funds.

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