4th Oct 2006 07:00
Beazley Group PLC04 October 2006 Press Release Beazley raises £150 million subordinated debt London, UK, October 4, 2006 - Beazley Group plc ("Beazley"), announces it hasconditionally agreed to raise £150m of Lower Tier Two long term subordinateddebt, through the issue of Fixed / Floating Rate Subordinated Notes due 2026("the Issue"). The proceeds of the Issue will be used to replace an existingshort term facility and to support opportunities to grow the business as theyarise. The Issue is callable on 17 October 2016 and bears an initial interest at therate of 7.25 per cent, payable annually in arrear, representing a spread of 265basis points over the benchmark gilt. Following the call date the interest rateresets at 328 basis points above the London interbank offer rate ("LIBOR"),payable quarterly in arrear. The Issue is expected to be assigned a rating ofBBB- by Standard & Poor's and to be listed on the London Stock Exchange. Andrew Horton, Group Finance Director said; 'We are enthusiastic about our debut in the debt markets and are delighted thatit was so heavily over subscribed. The £150m of subordinated debt, which thisIssue will raise, will further strengthen our balance sheet. Andrew Beazley, Chief Executive said; 'The rating Beazley received from Standard & Poor's and investor demand for theissue are a positive endorsement of the direction the business is taking. Theinsurance industry is going through an exciting phase and a well-structuredbalance sheet will support future development.' J P Morgan Cazenove and The Royal Bank of Scotland acted as Joint Lead Managerson the Issue, which is subject to certain conditions, and is to settle and closeon or before 17 October 2006. Stabilisation: FSA / ICMA ENDS For further information, please contact: Beazley Group plcAndrew Beazley T +44 (0)20 7667 0623Andrew Horton T +44 (0)20 7667 0623 FinsburySimon Moyse T +44 (0)20 7251 3801 Notes to Editors Based in London, UK, Beazley Group, plc (BEZ.L), founded in 1986, and floated onthe LSE in 2002, is the parent company of global, specialist insurancebusinesses with operations in the UK, US and Hong Kong. Beazley manages twoLloyd's syndicates (Syndicate 2623 and Syndicate 623) with aggregateunderwriting capacity in 2006 of £830m (US$1.5bn). Both syndicates are rated Aby A.M. Best. In the US, Beazley's underwriters focus on writing specialistinsurance products in the admitted market, backed by Beazley Insurance Company,Inc., an admitted carrier in all 50 states; and the Beazley syndicates atLloyd's. Beazley Insurance Company is rated A- by A.M. Best. Beazley is a market leader in many of its chosen lines including professionalindemnity, commercial property, marine, reinsurance, and personal lines. For more information please go to: www.beazley.com This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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