By Rebecca Melvin
New York, Dec. 12 - QBE Insurance Group Ltd. has sold $500 million of 27-year subordinated convertible notes to yield a floating rate of 325 basis points over six-month U.S. dollar Libor, according to a news release.
The convertible notes are non-callable for seven years, and holders can convert the notes into QBE shares after 18 months.
The conversion rate will depend on a market price calculated around the time of conversion and discounted 1%.
Proceeds will qualify as lower tier 2 capital for QBE. QBE's regulatory capital after the convertible issue and by Dec. 31 is expected to be greater than 1.6 times the APRA minimum capital requirement and the prescribed capital under current law.
QBE is a Sydney, Australia-based insurance company.
| Issuer: | QBE Insurance Group Ltd.
|
| Issue: | Convertible subordinated notes
|
| Amount: | US$500 million
|
| Maturity: | December 2039
|
| Coupon: | Six-month U.S. dollar Libor plus 325 bps
|
| Calls: | Non-callable for seven years
|
| Convertible: | After 18 months
|
| Announcement date: | Dec. 12
|
| Stock symbol: | Australia: QBE
|
| Stock price: | A$10.50 at close Dec. 11
|
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