Standard Life plc (SL.) - Subordinated Debt issuance
RNS Number : 0507S
Standard Life plc
27 November 2012
Standard Life plc today announced a subordinated debt issuance raising £500
million principal amount of 5.5% fixed/fixed subordinated notes with a first
call date in December 2022 (the "subordinated notes").
This initiative further optimises the financial structure of the Standard Life
Group and builds on past actions to re-shape its balance sheet and improve its
The strong market demand, which was evidenced by a heavily over subscribed
order book, has enabled Standard Life plc to price competitively at the low
end of its target range, thereby underlining the attractiveness of the
Company's credit, the strength of its recent performance and its future
The subordinated notes will bear interest at a fixed rate of 5.5% for ten
years until the call date in 2022. The subordinated notes are unguaranteed and
have a legal final maturity in December 2042.
The proceeds from the debt issuance will be held for general corporate
purposes and will count towards the Group's IGD (Insurance Groups Directive)
surplus. The subordinated notes have also been designed to be compliant with
the requirements of Solvency 2 albeit the provisions of Solvency 2 have still
to be finalised.
The subordinated notes are expected to be rated "Baa2" by Moody's and "BBB" by
Standard & Poor's.
Jackie Hunt, Chief Financial Officer commented today: "As part of our active
capital management programme, and building on the recent issuance of
subordinated debentures in Canada, we have today taken advantage of favourable
market conditions to improve the leverage position of the Standard Life Group
via a subordinated debt issuance directly from our holding company. The strong
order book and successful placement is a powerful signal of investors'
confidence in Standard Life's financial strength and strategic plans."
The syndicate for the offering was co-led by Barclays, Deutsche Bank, Merrill
Lynch, The Royal Bank of Scotland and UBS Investment Bank. The offering is
expected to close on 4^th December 2012.
The subordinated notes have not been and will not be registered in the United
States under the United States Securities Act of 1933, as amended (the
"Securities Act"), or the securities laws of any state of the United States
and may not be offered, sold or delivered, directly or indirectly in the
United States or to, or for the account or benefit of, a "U.S. person" (as
defined in Regulation S under the Securities Act) absent registration or an
applicable exemption from such registration requirements. This press release
does not constitute an offer to sell or a solicitation to buy securities in
the United States and any public offering of the securities in the United
States must be made by means of a prospectus.
Contact details for further information:
Scott Forrest Group Capital Management 0131 245
Nick Mardon Group Capital Management 0131 245
This information is provided by RNS
The company news service from the London Stock Exchange
NRAFELFAMFESELF -0- Nov/27/2012 07:01 GMT
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