CNP Assurances buys back €380 million perpetuals via new note proceeds

By Susanna Moon

Chicago, July 22 - CNP Assurances said it repurchased €380 million of its €1.25 billion perpetual notes on July 19 using proceeds of a $500 million issue of perpetual subordinated notes.

The buyback and new issue are meant to lengthen the average maturity of CNP Assurances' subordinated debt by replacing some notes with a 2016 call date with a new tranche callable in 2019, according to a company press release.

The new issue was launched after a roadshow in Asia drew considerable investor interest and was 10 times oversubscribed with €4.7 billion of orders received from 280 investors.

The notes will pay 6.875% interest through 2019, after which the rate will be adjusted every six years based on the six-year mid-swap rate in dollars.

The $500 million issue was swapped for euros, which enabled CNP Assurances to lower the interest paid to 5.83%, the company said.

The notes have been rated A- by Standard & Poor's.

The new subordinated notes issue will allow CNP Assurances to continue to diversify its subordinated debt investor base among dollar-denominated investors, particularly in Asia, according to the Paris-based insurance company.

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