29th May 2020 17:07
(Alliance News) - Direct Line Insurance Group PLC on Friday priced its offering of notes at GBP260 million, which will go towards improving its liquidity during the heightened uncertainty in the macroeconomic environment.
The 4.000% subordinated tier 2 notes are due 2032, with the issuance expected to be completed on June 5. The notes are also anticipated to be given a Baa1 rating by Moody's Investors Service.
"This transaction builds on our strategic objective outlined at the Capital Markets Day in November 2019 to have an efficient capital structure for the medium to long-term, by improving the debt profile of the group and reducing refinancing risk. It also further improves our financial flexibility and liquidity during the heightened uncertainty in the macroeconomic environment," said Chief Financial Officer Tim Harris.
Shares in the FTSE 250-listed home and motor insurer closed 2.0% lower at 264.60 pence on Friday in London.
By Dayo Laniyan; [email protected]
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