Prudential will use recent equity raise to redeem high-coupon debt

Chicago, Oct. 22 – Prudential plc announced the forthcoming redemption of four high-coupon bonds in a press release on Friday.

The company raised approximately $2.4 billion in a Hong Kong public offering and international placing of its shares.

The company had announced on Sept. 19 that it would use $2.25 billion of the net proceeds of the share offer to redeem existing high-coupon debt.

Prudential has selected the following bonds for optional redemption and will redeem them on the noted dates:

• $250 million 6.75% capital securities (ISIN: GB00B02FFZ25) with redemption on Dec. 23;

• $300 million 6.5% capital securities (ISIN: GB00B0G40271) with redemption on Dec. 23;

• $700 million 5.25% notes (ISIN: XS0873630742) with redemption on Dec. 23; and

• $1 billion 5.25% notes (ISIN: XS1426796477) with redemption on Jan. 20.

Interest costs will be reduced around $125 million per year through the redemptions.

Prudential also is monitoring opportunities to raise new debt to refinance higher-coupon existing debt on scheduled call dates or maturity dates.

The life insurance and financial services company is based in London.

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