Society of Lloyd’s tenders for £153.24 million 6 7/8% notes due 2025

By Susanna Moon

Chicago, Oct. 23 – Society of Lloyd’s said it began a tender offer for its £300 million 6 7/8% subordinated notes due 2025.

The purchase price will be £1,057.50 per £1,000 principal amount plus accrued interest to but excluding the settlement date.

There is £153,241,000 of the notes outstanding.

Holders must tender a minimum principal amount of £50,000 and integral multiples of £1,000 principal amount after that.

The tender offer is conditioned on Lloyd’s plans to issue new sterling-denominated fixed-rate subordinated notes due 2024, which are expected to price at 11 a.m. ET on Oct. 29.

The tender offer also will end at 11 a.m. ET on Oct. 29, and settlement will follow Oct. 31.

The dealer managers are Barclays Bank plc (+44 0 20 3134 8515 or email eu.lm@barclays.com), Citigroup Global Markets Ltd. (+44 20 7986 8969 or email liabilitymanagement.europe@citi.com) and Royal Bank of Scotland plc (+44 0 20 7085 5991 or email liabilitymanagement@rbs.com).

The tender agent is Citibank, NA (+44 0 20 7508 3867 or email exchange.gats@citi.com).

The offer provides some liquidity to noteholders and Lloyd’s will benefit from reorganization of its own funds with the intention of complying with the requirements of Directive 2009/138/EC of the European Union on the taking up and pursuit of the business of insurance and reinsurance as implemented in the United Kingdom, according to a company press release.

The provider of specialty insurance and reinsurance is based in London.

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