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Direct Line tenders for £250 million of fixed-to-floaters due 2042
By Susanna Moon
Chicago, Nov. 22 – Direct Line Insurance Group plc is tendering for up to £250 million of its £500 million of fixed-to-floating guaranteed subordinated notes due 2042.
Pricing will be set using the 4% U.K. Treasury note due March 2022 plus 125 basis points.
The tender offer will end at 11 a.m. ET on Nov. 30.
The offer is being made to improve the group’s capital structure and debt profile, according to a company announcement.
The company also is planning to issue sterling-denominated fixed-rate reset perpetual restricted tier 1 contingent convertible notes with proceeds to be used to fund the tender.
The purchase price is intended to reflect a yield to the first call date of April 27, 2022 on the settlement date using the purchase yield.
Tender instructions must be sent for a nominal amount of at least £100,000 or in integrals of £1,000 after that.
Settlement is expected to occur on Dec. 8.
The tender is contingent on issue of new notes with a minimum denomination of £200,000.
The dealer managers are Deutsche Bank AG, London Branch (+44 (0)20 7545 8011), HSBC Bank plc (+44 0 20 7992 6237 or LM_EMEA@hsbc.com), Royal Bank of Scotland plc, trading as NatWest Markets, (+44 0 20 7678 5405 or LiabilityManagement@natwestmarkets.com). The tender agent is Lucid Issuer Services Ltd. (+44 207 704 0880 or directline@lucid-is.com).
Direct Line is an insurance company based in Bromley, England.
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