RL Finance tenders for £400 million 6.125% perpetual step-up notes

By Susanna Moon

Chicago, Nov. 14 - RL Finance Bonds plc said it began a tender offer for its £400 million 6.125% perpetual cumulative step-up subordinated notes guaranteed on a subordinated basis by Royal London Mutual Insurance Society Ltd.

The purchase price will be £1,010 per £1,000 nominal amount plus accrued interest.

The offer is part of the guarantor's active management of the Royal London group's capital structure and is conditioned on financing because the guarantor seeks to refinance the notes with a new issue of solvency II-compliant tier 2 capital, according to a company notice.

Holders must deliver tender instructions by 11 a.m. ET on Nov. 25.

The offer is conditioned on the completion of the issue by RL Finance Bonds No. 2 plc of fixed-rate reset callable guaranteed subordinated notes due 2043.

Barclays Bank plc (attn.: liability management group, +44 20 7773 8990, eu.lm@barclays.com), BofA Merrill Lynch (attn.: John Cavanagh, +44 20 7995 3715 or john.m.cavanagh@baml.com, or attn.: Karl Bystedt Wikblom, +44 20 7996 0867 or karl.bystedtwikblom@baml.com) and HSBC Bank plc (attn.: liability management group, +44 20 7992 6237 or liability.management@hsbcib.com) are the dealer managers. Lucid Issuer Services Ltd. (+44 20 7704 0880, fax +44 20 7067 9098, attn.: Yves Theis/Thomas Choquet or email rl@lucid-is.com) is the tender agent.

Royal London offers life insurance, pensions, savings products, investment products, property/casualty insurance, credit insurance and investment management. The company is based in London.

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