Old Mutual solicits consents from holders of six series of notes

By Jennifer Chiou

New York, March 15 - Old Mutual plc announced the start of a consent solicitation for the following series of notes:

• €30 million of 3.12% fixed-rate notes due July 11, 2010 (ISIN: XS0168080322);

• €10 million of 3.12% fixed-rate notes due Dec. 23, 2010 (ISIN: XS0179675508);

• €20 million of 5.01% notes due Aug. 6, 2013 (ISIN: XS0173801415);

• $50 million of floating-rate notes due September 2011 (ISIN: XS0201845319);

• ZAR 100 million of floating-rate notes due 2011 (ISIN: XS0445210593); and

• ZAR 550 million of floating-rate notes due 2010 (ISIN: XS0445211484).

The company is asking holders to vote in favor of extraordinary resolutions.

For the ZAR notes, Old Mutual is seeking the deletion of Condition 10(a)(vii) in its entirety and the amendment of Condition 10 (a)(iv), which involves the cessation of business by a principal subsidiary as a result of or in connection with any transfer, sale or disposal on arms' length terms of its undertaking or assets. The company said that holders who submit consents will deem that those conditions will not trigger an event of default.

In addition, the company is soliciting consents for similar resolutions to avoid the trigger of an event of default as a result of the cessation of business by a principal subsidiary.

Those who deliver consents by the early deadline of noon ET on March 26 will receive an early instruction fee of 0.5% of the principal amount of notes submitted in the solicitation. Thereafter, those submitting consents will receive 0.25%.

Noteholders are invited to a meeting in London on April 13.

The solicitation agents are Deutsche Bank AG, London Branch (liability.management@db.com), Merrill Lynch International (john.m.cavanagh@baml.com) and Nedbank Ltd. (Graham Hardy at ghardy@nedbank.co.uk). The tabulation agent is Deutsche Bank AG, London Branch (44 20 7547 5000 or xchange.offer@db.com).

Old Mutual Life Assurance Co. (South Africa) Ltd. is a subsidiary of the London-based financial services company.

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