Raises GBP 150m subord. debt
Beazley Group PLC
04 October 2006
Press Release
Beazley raises £150 million subordinated debt
London, UK, October 4, 2006 - Beazley Group plc ('Beazley'), announces it has
conditionally agreed to raise £150m of Lower Tier Two long term subordinated
debt, through the issue of Fixed / Floating Rate Subordinated Notes due 2026
('the Issue'). The proceeds of the Issue will be used to replace an existing
short term facility and to support opportunities to grow the business as they
arise.
The Issue is callable on 17 October 2016 and bears an initial interest at the
rate of 7.25 per cent, payable annually in arrear, representing a spread of 265
basis points over the benchmark gilt. Following the call date the interest rate
resets at 328 basis points above the London interbank offer rate ('LIBOR'),
payable quarterly in arrear. The Issue is expected to be assigned a rating of
BBB- by Standard & Poor's and to be listed on the London Stock Exchange.
Andrew Horton, Group Finance Director said;
'We are enthusiastic about our debut in the debt markets and are delighted that
it was so heavily over subscribed. The £150m of subordinated debt, which this
Issue will raise, will further strengthen our balance sheet.
Andrew Beazley, Chief Executive said;
'The rating Beazley received from Standard & Poor's and investor demand for the
issue are a positive endorsement of the direction the business is taking. The
insurance industry is going through an exciting phase and a well-structured
balance sheet will support future development.'
J P Morgan Cazenove and The Royal Bank of Scotland acted as Joint Lead Managers
on the Issue, which is subject to certain conditions, and is to settle and close
on or before 17 October 2006.
Stabilisation: FSA / ICMA
ENDS
For further information, please contact:
Beazley Group plc
Andrew Beazley T +44 (0)20 7667 0623
Andrew Horton T +44 (0)20 7667 0623
Finsbury
Simon Moyse T +44 (0)20 7251 3801
Notes to Editors
Based in London, UK, Beazley Group, plc (BEZ.L), founded in 1986, and floated on
the LSE in 2002, is the parent company of global, specialist insurance
businesses with operations in the UK, US and Hong Kong. Beazley manages two
Lloyd's syndicates (Syndicate 2623 and Syndicate 623) with aggregate
underwriting capacity in 2006 of £830m (US$1.5bn). Both syndicates are rated A
by A.M. Best. In the US, Beazley's underwriters focus on writing specialist
insurance products in the admitted market, backed by Beazley Insurance Company,
Inc., an admitted carrier in all 50 states; and the Beazley syndicates at
Lloyd's. Beazley Insurance Company is rated A- by A.M. Best.
Beazley is a market leader in many of its chosen lines including professional
indemnity, commercial property, marine, reinsurance, and personal lines.
For more information please go to: www.beazley.com
This information is provided by RNS
The company news service from the London Stock Exchange
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