14th May 2009 07:00
RSA raises £500m of subordinated debt following strong demand
RSA Insurance Group plc (RSA) has raised £500m of lower tier two subordinated debt. The proceeds will provide the Group with additional financial flexibility ahead of any call on its €500m subordinated guaranteed bonds in October 2009.
The issue, which will be denominated in Sterling, was priced on 12 May and is due for settlement on 20 May. The issue is callable on 20 May 2019, pays a coupon of 9.375% with a launch spread of 565 basis points over the benchmark gilt.
The transaction is expected to be rated BBB+ by Standard and Poor's and Baa1 by Moody's and will be listed on the London Stock Exchange.
-ENDS
For further information:
| Analysts | Press | |||||||||||||||
| Claire Cordell | Simon Kutner | |||||||||||||||
| Tel: +44 (0) 20 7111 7212 | Tel: +44 (0) 20 7111 7327 | |||||||||||||||
| Mobile: +44 (0) 7834 944204 | Mobile: +44 (0) 7795 445656 | |||||||||||||||
| Suzannah Seddon | Faeth Birch (Finsbury) | |||||||||||||||
| Tel: +44 (0) 20 7111 7140 | Tel: +44 (0) 20 7251 3801 | |||||||||||||||
| Mobile: +44 (0) 7779 298477 | Mobile: +44 (0) 7810 505473 |
Notes to editors:
The notes are Sterling denominated fixed rate guaranteed subordinated step-up notes maturing in 2039 with an initial call date in 2019.
About RSA
With an almost 300 year heritage, RSA is one of the world's leading multinational quoted insurance groups. It has the capability to write business in over 130 countries and with major operations in the UK, Scandinavia, Canada, Ireland, Asia and the Middle East and Latin America. Focusing on general insurance, it has around 22,000 employees and, in 2008, its net written premiums were £6.5bn.
Important Disclaimer
This press release may contain "forward-looking statements" (as defined in the US Private Securities Litigation Reform Act of 1995) with respect to certain of the Company's plans and its current goals and expectations relating to its future financial condition, performance and results. By their nature, all forward-looking statements involve risk and uncertainty because they relate to future events and circumstances which are beyond the Company's control, including amongst other things, UK domestic and global economic business conditions, market-related risks such as fluctuations in interest rates and exchange rates, the policies and actions of regulatory authorities, the impact of competition, inflation, deflation, the timing impact and other uncertainties of future acquisitions or combinations within relevant industries, as well as the impact of tax and other legislation and other regulations in the jurisdictions in which the Company and its affiliates operate. As a result, the Company's actual future financial condition, performance and results may differ materially from the plans, goals and expectations set forth in the Company's forward-looking statements. The Company undertakes no obligation to update any forward-looking statements, save in respect of any requirement under applicable law or regulation. Nothing in this press release shall be construed as a profit forecast.
Copyright Business Wire 2009
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