16th Jan 2006 07:00
Advent Capital (Holdings) PLC16 January 2006 NOT FOR RELEASE IN THE UNITED STATES OR TO U.S. PERSONS Advent Capital (Holdings) PLC ("Advent" or "the Company") CLOSING OF DEBT ISSUE AND SUBSTITUTION OF FUNDS AT LLOYD'S Advent Capital (Holdings) PLC, the specialist Lloyd's insurer, today announcesthat it has closed its US$26 million (£15 million) Floating Rate Senior Notesissue at an interest rate of three month US$ LIBOR + 4.5% through placementagents Keefe, Bruyette & Woods, Inc. and FTN Financial Capital Markets. This completes the £45 million capital raising announced by the Company on 24and 28 November 2005 Following the IPO and capital raising in June, Advent lodged new funds atLloyd's in November 2005 to support its increased underwriting for 2006 onSyndicate 780 (increasing from £82 million in 2005 to £122 million in 2006)enabling Advent to take advantage of the strong market conditions expected for2006. In line with the stated objects of the recent fundraising, Advent has now beguna programme of depositing additional monies into its funds at Lloyd's, as partof the process for providing for open year losses on the 2004 and 2005 years ofaccount, with an initial deposit of £38 million. This programme of deposits will gradually replace the funds at Lloyd's currentlyprovided by Fairfax Financial Holdings Limited under the five-year FundingAgreement signed in 2000, as part of Advent's commitment to provide permanentcapital to support Syndicate 780's underwriting for 2006 and onwards. 16 January 2006 Enquiries: Advent Capital (Holdings) PLC Keith Thompson +44 20 7743 8200 Neil Ewing +44 20 7743 8250 Pelham Public Relations Charles Vivian +44 20 7743 6672 [email protected] Gavin Davis +44 20 7743 6677 [email protected] NOT FOR RELEASE IN THE UNITED STATES OR TO U.S. PERSONS Notes to Editors • Advent listed on AIM in June 2005 raising a total of £65 million. • The recent placement and this new debt facility have raised a further £45 million • Advent manages and participates on Syndicate 780 through Advent Underwriting Limited (a Lloyd's managing agency) and Advent Capital Limited (a corporate member of Lloyd's). • Advent Underwriting Limited, which was formed in 1975, has operated in the Lloyd's market for thirty years. • Syndicate 780 has outperformed the Lloyd's market in 27 of the last 29 closed years of account returning an average profit of 18.5% compared with the Lloyd's average of 1.3%. However, Syndicate 780 is expected to underperform the Lloyd's market for the 2004 and 2005 years of account. • Syndicate 780's latest forecast results as at 30 September 2005 were: o 2003 account - profit 25% - 30% of underwriting capacity (total capacity £228 million) o 2004 account - loss 17.5 -22.5 % of underwriting capacity (total capacity £216 million) • Advent's management is led by Brian Caudle (Executive Chairman and Director of Underwriting) and Keith Thompson (Chief Operating Officer). THE INFORMATION CONTAINED HEREIN IS NOT FOR PUBLICATION OR DISTRIBUTION INTO THEUNITED STATES OF AMERICA. NEITHER THIS ANNOUNCEMENT NOR ANY COPY OF IT MAY BETAKEN OR DISTRIBUTED OR PUBLISHED, DIRECTLY OR INDIRECTLY, IN THE UNITED STATESOR DISTRIBUTED TO U.S. PERSONS. THE MATERIAL SET FORTH HEREIN IS FOR INFORMATIONAL PURPOSES ONLY AND IS NOTINTENDED, AND SHOULD NOT BE CONSTRUED, AS AN OFFER OF SECURITIES FOR SALE INTOTHE UNITED STATES OR ANY OTHER JURISDICTION. SECURITIES MAY NOT BE OFFERED ORSOLD IN THE UNITED STATES ABSENT REGISTRATION UNDER THE U.S. SECURITIES ACT OF1933, AS AMENDED, OR AN EXEMPTION FROM REGISTRATION. THE SECURITIES OF THECOMPANY DESCRIBED HEREIN HAVE NOT BEEN AND WILL NOT BE SO REGISTERED. THEREWILL BE NO PUBLIC OFFER OF SECURITIES IN THE UNITED STATES. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
ADV.L