Lloyd's, the world's leading specialist insurance market, announced today that it is offering to buy back some of its subordinated debt securities.
Lloyd’s is inviting holders of the €300,000,000 5.625% Fixed/Floating Rate Subordinated Notes due 2024 (ISIN: XS0205875395) (the “2024 Notes”), the £300,000,000 6.875% Subordinated Notes due 2025 (ISIN: XS0205875049) (the “2025 Notes”) and the £500,000,000 Perpetual Subordinated Capital Securities (ISIN: XS0307055995) (the “Perpetual Capital Securities” and together with the 2024 Notes and 2025 Notes, the “Securities”) to submit offers to sell their Securities for cash to Lloyd’s in a Modified Dutch Auction.
Citing a strong capital position and current market conditions, Lloyd's is seeking to repurchase up to £100,000,000 in aggregate principal amount of the Securities and this transaction therefore provides a degree of liquidity to those holders whose Securities are accepted in the Invitation.
Furthermore, the Securities currently trade at a significant discount compared to their initial issue price. To the extent that Lloyd's repurchases Securities, the transaction will allow Lloyd's to benefit from this discount without materially affecting its capital position.
The purchase price per €1,000 or £1,000 principal amount, as applicable, will be no less than €700 for the 2024 Notes; no less than £800 for the 2025 Notes; and no less than £530 for the Perpetual Capital Securities.
The invitation will be open until 16.00 (London time) on 29 April 2009, unless extended or terminated and is expected to settle on 6 May 2009.
Full terms and conditions of the invitation including certain jurisdictional restrictions are set out in the Invitation for Offers document dated 22 April 2009.
For further information, please contact:
Louise Shield
Tel: +44 (0)20 7327 5793 Fax: +44 (0)20 7327 5229 Email:
louise.shield@lloyds.com
Bart Nash
Tel: +44 (0)20 7327 6272 Fax: +44 (0)20 7327 5229 Email:
bart.nash@lloyds.com
For urgent out of hours media calls Tel: +44 (0)7659 597 825
Find out more about Lloyd's
Lloyd's is the world's leading specialist insurance market and occupies fifth place in terms of global reinsurance premium income, and is the second largest surplus lines insurer in the US. In 2009, 74 syndicates are underwriting insurance at Lloyd's, covering all classes of business from more than 200 countries and territories worldwide. Lloyd's is regulated by the Financial Service Authority.
