Old Mutual announces redemption prices for 8% notes and 7.875% notes

By Sarah Lizee

Olympia, Wash., Nov. 13 – Old Mutual plc set the redemption prices for its £72,102,000 of outstanding 8% subordinated notes due June 3, 2021 and its £44,889,000 of outstanding 7.875% subordinated notes due Nov. 3, 2025, according to a notice.

The 2021 notes will be redeemed at 113.811, and the 2025 notes will be redeemed at 137.661, in each case plus accrued interest.

As previously reported, the company said on Nov. 12 that it secured the needed votes at adjourned meetings to amend the notes.

Bondholder meetings were adjourned to Nov. 12 in London because the meetings held Oct. 25 in London were not quorate.

The issuer was asking for approval to call the two series of notes that remain outstanding after the tender offer that ended at 11 a.m. ET on July 17.

The consent solicitation was extended until 11 a.m. ET on Nov. 7 from 11 a.m. ET on Oct. 22.

The issuer had previously given a hypothetical total purchase price as follows:

• £500 million 8% notes with hypothetical total purchase price of 116.732% using the 1.5% U.K. Treasury gilt due Jan. 22, 2021 plus an early redemption spread of 50 basis points; and

• £450 million 7.875% notes with hypothetical total purchase price of 139.496% based on the 2% U.K. Treasury gilt due Sept. 7, 2025 plus an early redemption spread of 50 bps.

The consent fee is 3% for each series.

The quorum required was one or more persons representing at least two-thirds of the outstanding notes. To pass, each measure required a majority consisting of at least three-fourths of the votes cast.

The solicitation agent is Merrill Lynch International (+44 20 7996 5420 or DG.LM_EMEA@baml.com). The tabulation agent is Lucid Issuer Services Ltd. (+ 44 20 7704 0880 or oldmutual@lucid-is.com).

In the tenders that began July 9, the company was tendering for the notes at a purchase price of 116% for the 8% notes and 121% for the 7.875% notes.

The company accepted tenders for £268,782,000, or 78.85%, of the 8% notes and £15,953,000, or 26.22%, of the 7.875% notes in that offer.

Along with those tender offers, which resulted in retiring a “significant portion” of the notes, the company completed a managed separation of the Old Mutual Group with Old Mutual Ltd. now a holding company of Old Mutual plc, according to an announcement.

In light of those things, the company was looking to use “available liquidity to continue to manage the company's debt maturity profile by further reducing outstanding indebtedness and associated interest costs by retiring the relevant series in full should the relevant proposal be implemented,” the company previously said.

Old Mutual is a London-based financial services company.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.