Close Brothers Nets £250 Million Tier 2 as Outlook Improves

Close Brothers Group Plc sold £250 million ($344 million) of Tier 2 notes on Tuesday as possible delays to the UK motor finance complaints support the lender’s outlook.

The 10.5-year non-call 5.5 subordinated note was priced at 6.125%, pulling in more than £1.75 billion of investor bids, according to a person familiar with the matter. It was tightened from around 6.5% offered earlier. The company plans to use the proceeds to diversify and further strengthen its capital structure, including refinancing existing securities, said the person who asked not to be identified.