15th Mar 2005 15:55
Old Mutual PLC15 March 2005 Old Mutual launches Innovative Tier 1 preferred securities Old Mutual plc ("Old Mutual") has today launched and priced a £350 million issueof Perpetual Preferred Callable Securities with an initial coupon of 6.376 percent. payable annually in arrear until the first call date in March 2020. Theissue price is 100 per cent. The issue yield to the first call is 6.2775 percent. semi-annual, based on a spread of 150 basis points over the 8 per cent.Gilt due 2021 at the time of pricing. If the issue is not called in 2020, thecoupon will reset semi-annually at a margin of 223 bps over 6 month LIBOR. The transaction was launched after a 4-day investor roadshow in the UK. The issue will be used to fund the general business and commercial activities ofthe Group, including repayment of existing debts, and to augment its regulatorycapital base. It is expected to be rated Baa2/BBB+ by Moody's and Fitchrespectively and will be listed on the Stock Market of Euronext Amsterdam N.V. Julian Roberts, Old Mutual's Group Finance Director, commented: "We have takenadvantage of good investor appetite for high-quality Sterling paper to launch anissue of securities for Old Mutual plc that will qualify as Tier 1 capital. Weare delighted with the response of investors to the Old Mutual name and creditin this issue, which follows the recent improvements to our credit ratingoutlook." 15 March 2005 ENQUIRIES: Investor Relations:James Poole +44 (0) 20 7002 7000 Group Treasury:Don Hope +44 (0) 20 7002 7124 NOTES TO EDITORS: The joint bookrunners are Barclays Capital and UBS Investment Bank For further details about Old Mutual plc visit www.oldmutual.com This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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