By Paul A. Harris
Portland, Ore., Oct. 15 - Hastings Insurance Group plc priced £416.5 million of senior secured notes (/B-/BB-) in two tranches on Monday, according to a market source.
The deal included a £150 million tranche of six-year Libor plus 600 basis points floating-rate notes, which were priced at 99. The spread came at the tight end of the Libor plus 600 bps to 625 bps spread talk.
In addition Hastings Insurance priced a £266.5 million tranche of eight-year fixed-rate notes at par to yield 8%. The yield came at the tight end of the 8% to 8¼% yield talk.
Credit Suisse and Goldman Sachs International were the joint global coordinators. JPMorgan was the joint bookrunner.
The Suffolk, England-based insurance company plans to use the proceeds to refinance debt and to fund the equity portion of its purchase by Goldman Sachs Principal Investments.
| Issuer: | Hastings Insurance Group plc
|
| Face amount: | £416.5 million
|
| Proceeds: | £415 million
|
| Securities: | Senior secured notes
|
| Joint global coordinators: | Credit Suisse, Goldman Sachs International
|
| Joint bookrunner: | JPMorgan
|
| Trade date: | Oct. 14
|
| Settlement date: | Oct. 21
|
| Ratings: | Standard & Poor's: B-
|
| Fitch: BB-
|
| Distribution: | Rule 144A and Regulation S
|
| Marketing: | Roadshow
|
|
|
| Floating-rate notes
|
| Amount: | £150 million
|
| Maturity: | 2019
|
| Coupon: | Libor plus 600 bps
|
| Price: | 99
|
| First call: | Callable at 101 after one year
|
| Price talk: | Libor plus 600 bps to 625 bps
|
|
|
| Fixed-rate notes
|
| Amount: | £266.5 million
|
| Maturity: | 2020
|
| Coupon: | 8%
|
| Price: | Par
|
| Yield: | 8%
|
| Spread: | 591 bps
|
| First call: | After three years at 104
|
| Price talk: | 8% to 8¼%
|
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