Old Mutual launches Innovative Tier 1 preferred se
Old Mutual Plc - Old Mutual Launches Innovative Tier 1 Preferred Securities
OLD MUTUAL PLC
ISIN CODE: GB0007389926
JSE SHARE CODE: OML
NSX SHARE CODE: OLM
ISSUER CODE: OLOML
Old Mutual launches Innovative Tier 1 preferred securities
Old Mutual plc (`Old Mutual`) has today launched and priced a GBP350 million
issue of Perpetual Preferred Callable Securities with an initial coupon of 6.376
per cent. payable annually in arrear until the first call date in March 2020.
The issue price is 100 per cent. The issue yield to the first call is 6.2775
per cent. 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,
the coupon 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 of
the Group, including repayment of existing debts, and to augment its regulatory
capital base. It is expected to be rated Baa2/BBB+ by Moody`s and Fitch
respectively and will be listed on the Stock Market of Euronext Amsterdam N.V.
Julian Roberts, Old Mutual`s Group Finance Director, commented: `We have taken
advantage of good investor appetite for high-quality Sterling paper to launch an
issue of securities for Old Mutual plc that will qualify as Tier 1 capital. We
are delighted with the response of investors to the Old Mutual name and credit
in this issue, which follows the recent improvements to our credit rating
outlook.`
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
Sponsor
Merrill Lynch
Date: 15/03/2005 05:55:02 PM
Produced by the JSE SENS Department
Profile Group (Pty) Ltd. has taken care in preparing all information on this website, but does not accept any liability for errors or out-of-date information.
