15th Jul 2005 16:08
Prudential PLC15 July 2005 FOR IMMEDIATE RELEASE Friday 15 July 2005 Prudential plc - Issue of US$300m subordinated securities On 15 July 2005, Prudential plc issued US$300 million perpetual subordinatedsecurities exchangeable into preference shares. They bear interest at 6.5% p.a.,payable quarterly in arrears, and rank equal to preference shares. The securities can be redeemed at Prudential plc's option on any interestpayment date from 23 September 2010. Payments under the securities would bemandatorily or optionally deferred if Prudential plc fails to meet certainconditions relating to solvency which are set out in the terms and conditions ofthe securities. Interest may be paid through an alternative coupon settlement mechanism at anytime. Deferred interest is only payable at redemption or exchange, through analternative coupon settlement mechanism, or upon a winding-up. Prudential plchas the option to exchange the securities into fixed-rate 6.5% preference shareson any interest payment date from 23 March 2011. Dividend payments on thepreference shares are fully discretionary. The securities were sold in the US market and application to list them on theNew York Stock Exchange has been made. They are rated A by Standard & Poor's,Baa1 by Moody's and A + by Fitch. The proceeds will be used to refinanceexisting debt, while also counting towards Prudential plc's regulatory capitalrequirements. This press release is not an offer for sale of the securities in the UnitedStates, and the securities may not be sold in the United States absentregistration or an exemption from registration under the U.S. Securities Act of1933, as amended. Any public offering of the securities in the United Stateswill be made by means of a prospectus containing detailed information regardingPrudential plc (the "Company") and the Company's management, including financialstatements. Such prospectus will be made available through the Company. TheCompany has registered the offering in the United States. - ENDS - Not for distribution in the United States. Enquiries to: Media Investors/AnalystsJon Bunn 020 7548 3559 James Matthews 020 7548 3561William Baldwin-Charles 020 7548 3304 Marina Lee-Steere 020 7548 3511Joanne Davidson 020 7548 3708 Notes to Editors *Prudential plc, a company incorporated and with its principal place of businessin the United Kingdom, and its affiliated companies constitute one of theworld's leading financial services groups. It provides insurance and financialservices directly and through its subsidiaries and affiliates throughout theworld. It has been in existence for over 150 years and has £187 billion inassets under management, (as at 31 December 2004). Prudential plc is notaffiliated in any manner with Prudential Financial, Inc, a company whoseprincipal place of business is in the United States of America. Forward-Looking Statements This statement may contain certain "forward-looking statements" with respect tocertain of Prudential's plans and its current goals and expectations relating toits future financial condition, performance, results, strategy and objectives.Statements containing the words "believes", "intends", "expects", "plans","seeks" and "anticipates", and words of similar meaning, are forward-looking.By their nature, all forward-looking statements involve risk and uncertaintybecause they relate to future events and circumstances which are beyondPrudential's control including among other things, UK domestic and globaleconomic and business conditions, market related risks such as fluctuations ininterest rates and exchange rates, and the performance of financial marketsgenerally; the policies and actions of regulatory authorities, the impact ofcompetition, inflation, and deflation; experience in particular with regard tomortality and morbidity trends, lapse rates and policy renewal rates; thetiming, impact and other uncertainties of future acquisitions or combinationswithin relevant industries; and the impact of changes in capital, solvency oraccounting standards, and tax and other legislation and regulations in thejurisdictions in which Prudential and its affiliates operate. This may forexample result in changes to assumptions used for determining results ofoperations or re-estimations of reserves for future policy benefits. As aresult, Prudential's actual future financial condition, performance and resultsmay differ materially from the plans, goals, and expectations set forth inPrudential's forward-looking statements. Prudential undertakes no obligation toupdate the forward-looking statements contained in this statement or any otherforward-looking statements it may make. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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