Phoenix Group sets maximum acceptance amount for tender offer

Chicago, Nov. 28 – Phoenix Group Holdings plc set the maximum acceptance amount for its tender offer at £350 million principal amount after the company priced a new £350 million issue of tier 2 notes due 2053 on Tuesday, according to a press release.

Phoenix started a tender offer on Monday for its £428,113,000 6.625% subordinated notes due Dec. 18, 2025 (ISIN: XS1171593293) and its $500 million fixed-rate reset tier 2 notes due Sept. 4, 2031 (ISIN: XS2182954797).

As previously reported, the principal amount of dollar notes accepted for purchase (if any) will be converted into pounds sterling at the exchange rate of $1.26000 per £1.

The purchase price for the 2025 sterling notes will be calculated based on the 3.5% U.K. Gilt due Oct. 22, 2025 and a fixed spread of 115 basis points. The purchase price is fixed at 94.75 for the 2031 dollar notes.

The company will also pay accrued interest.

The company said it reserves the right to accept significantly more or less (or none) of the tendered notes of one series as compared to the other series.

Tenders may be subject to proration.

The offers will expire at 11 a.m. ET on Dec. 4.

Indicative results will be announced prior to the pricing time for the 2025 notes, which will be around 6 a.m. ET on Dec. 5. Final results will be announced after the pricing time.

Settlement is expected to be on Dec. 7.

The dealer managers for the tender offers are Banco Bilbao Vizcaya Argentaria, SA (+44 20 7397 6029 / 6061; liabilitymanagement@bbva.com), HSBC Bank plc (+44 20 7992 6237; LM_EMEA@hsbc.com), J.P. Morgan Securities plc (+44 20 7134 2468; liability_management_EMEA@jpmorgan.com), Merrill Lynch International (+44 20 7996 5420; DG.LM-EMEA@bofa.com) and NatWest Markets plc (+44 20 7678 5222; NWMliabilitymanagement@natwestmarkets.com).

The tender agent is Kroll Issuer Services Ltd. (+44 20 7704 0880; attn.: Jacek Kusion; phoenix@is.kroll.com; https://deals.is.kroll.com/phoenix).

The London-based life insurance and pension funds services company said the main purpose of the tender offers and the planned issuance of new notes is to proactively manage its expected redemption profile.

© 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.