Old Mutual wraps any-and-all tender for 7.875% notes, capped offer

By Susanna Moon

Chicago, Nov. 27 – Old Mutual plc said investors had tendered £389,158,000, or 86.48%, of its £450 million of 7.875% subordinated notes due Nov. 3, 2025.

Holders also had tendered £302,703,000, or 60.54%, of its £500 million of 8% subordinated notes due June 3, 2021.

Old Mutual accepted for purchase all of the 7.875% notes and £159,116,000 of the 8% notes using a proration factor of 55.3150%, according to a press release.

After the purchases, the outstanding amount will be £60,842,000 of the 2025 securities and £340,884,000 of the 2021 securities.

As previously announced, the issuer was tendering for all of its 7.875% notes until 11 a.m. ET on Nov. 21 and for a capped amount of its 8% notes until 11 a.m. ET on Nov. 3.

At the meeting held last Thursday in London, the company obtained the needed approval to amend the notes.

Old Mutual had sought modifications to the terms of the 2025 notes to modify restrictions on the purchase of the securities by the company to allow the purchases under the tender.

For the 7.875% notes, the purchase price is 125% of par. The company also offered an early consent fee of 0.25%.

In the tender for the 8% notes, the issuer previously said it will purchase an amount equal to £560 million less the total amount paid for the 2025 notes.

The purchase price for the 8% notes is 118.5% of par.

Holders also will receive accrued interest.

The offer for the 7.875% notes was extended from 11 a.m. ET on Nov. 3.

By the original expiration of the tender offer for the 2025 notes, the company had received tenders of £361,292,000, or 80.29%, of the notes.

Settlement was expected to occur Nov. 24.

The quorum required for the meeting was one or more holders representing a majority of the outstanding notes. To pass, the measure required a majority of at least three-fourths of the votes cast at the meeting.

The offers opened Oct. 25.

The dealer managers are Merrill Lynch International (+44 20 7996 5420 or DG.LM_EMEA@baml.com) and Nedbank Ltd., London Branch (+44 20 7002 3540 or liability.management@nedbank.co.uk). The tender agent is Lucid Issuer Services Ltd. (+44 20 7704 0880 or oldmutual@lucid-is.com).

Old Mutual is a London-based financial services company.

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