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Old Mutual buys £176.25 million fixed-to-floaters, preferreds in offer
By Susanna Moon
Chicago, Nov. 14 - Old Mutual plc will now repurchase £176,252,673 of its outstanding €500 million fixed-to-floating step-up option B undated subordinated notes and £350 million perpetual preferred callable securities, according to a company filing with the London Stock Exchange.
The company accepted for purchase €120,835,000 of the step-up notes and £74,797,000 of the perpetual preferreds, with settlement set for Nov. 19, according to a company press release.
The tender offer ended at 11 a.m. ET on Nov. 13. When the offer began on Nov. 6, the company had planned to tender for up to £175 million of the two series of notes.
The purchase price was set at €1,020 per €1,000 principal amount of the step-up notes and at £975 per £1,000 principal amount of perpetual preferreds.
Pricing was set under a modified Dutch auction with a minimum price of €1,010 per €1,000 principal amount of the floaters and £960 per £1,000 principal amount of perpetual preferreds.
Old Mutual also will also pay accrued interest.
As noted before, the current coupon is 5% for the €494.65 million of outstanding floaters and 6.376% for the £348 million outstanding perpetual preferreds.
The purpose of the offers was to purchase some outstanding debt of Old Mutual and thereby further reduce the overall level of debt and achieve the stated debt reduction target, as part of the debt reduction strategy announced in February 2012, a previous press release noted.
The dealer managers were Barclays Bank plc (+44 0 20 7773 8990, attn: liability management group, email to eu.lm@barclays.com), Nedbank Ltd., London Branch (+44 0 20 7002 3487, attn: liability management group, email to liability.management@nedbankcapital.co.uk) and Societe Generale (+44 0 20 7676 7579, attn: liability management, email to liability.management@sgcib.com).
The tender agent was Lucid Issuer Services Ltd. (+44 0 20 7704 0880, attn: Thomas Choquet, email: oldmutual@lucid-is.com).
The issuer is a London-based financial services company.
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