4th Sep 2024 11:24
Coats Group PLC - London-based manufacturer of industrial thread and footwear components - The trustee of the Coats UK Pension Scheme buys a GBP1.3 billion bulk annuity policy, de-risking the remaining 80% of the scheme's liabilities. Back in December 2022, it had bought an annuity policy for the first 20% of liabilities. Coats says the agreement with Pension Insurance Corp PLC means that all financial and demographic risks for its pension schemes are now fully hedged. Coats expects to be required to provide up to an additional GBP100 million in funding to the scheme, comprised of GBP70 million in upfront cash, plus a GBP30 million loan. As a result, the company's debt leverage will increase in 2024 but remain within its target range. However, USD30 million per year in deficit repair contributions to the scheme, which had been paused at the beginning of this year, will now end permanently. Read More
