REG - Chesnara PLC - £200m Inaugural Tier 2 Subordinated Notes Issuance

ChesnaraAnnouncement

02/02/2022 15:10

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RNS Number : 5121A  Chesnara PLC  02 February 2022

THIS ANNOUNCEMENT MAY NOT BE DISTRIBUTED, DIRECTLY OR INDIRECTLY, IN OR INTO
THE UNITED STATES, OR TO OR FOR THE BENEFIT OF U.S. PERSONS OR INTO ANY OTHER
JURISDICTION WHERE IT WOULD BE UNLAWFUL TO DO SO.

 

 

 

 

CHESNARA plc
("Chesnara" or "the Company")

 

02 February 2022

 

LEI Number: 213800VFRMBRTSZ3SJ06

 

 

SUCCESSFUL PRICING OF £200m INAUGURAL TIER 2 SUBORDINATED NOTES ISSUANCE

 

 

Chesnara plc ("Chesnara"), the UK and European life insurance consolidator,
today announces the successful pricing of its inaugural debt capital markets
issuance of £200 million Tier 2 Subordinated Notes (the "Notes"). The net
proceeds of the Notes will be used for general corporate purposes, including
investments and acquisitions.

 

The Notes are expected to be admitted to the Official List of Euronext Dublin
and to trading on the Global Exchange Market of Euronext Dublin and are rated
BBB- by Fitch Ratings with a stable outlook.  The Notes will have a 10.5 year
maturity, have a coupon of 4.75%, and are expected to be recognised as Tier 2
Capital in the Group's regulatory capital.

 

Steve Murray, CEO of Chesnara, said: "We are delighted with the level of
investor interest in Chesnara's first notes issuance. The financing will be
utilised primarily to provide financial flexibility and accelerate our growth
strategy including the delivery of value from future acquisitions, while also
underpinning, and diversifying our group's capital structure.

 

"The Notes represent an important milestone for Chesnara in enhancing our
Group's financing capabilities which will leave Chesnara well positioned to
pursue further growth opportunities."

Ends

 

 

 

For further information please contact:

 

Roddy Watt

Director, Capital Markets

FWD

Forward thinking communications

 

T   -    020 7280 0651

E   -    roddy.watt@fwdconsulting.co.uk
(mailto:roddy.watt@fwdconsulting.co.uk)

 

 

Notes to Editors

Chesnara is a life and pensions company listed on the London Stock Exchange.
It administers approximately 900,000 policies and operates as Countrywide
Assured in the UK, as The Waard Group and Scildon in the Netherlands, and as
Movestic in Sweden.

 

Following a three-pillar strategy, Chesnara's primary responsibility is the
efficient administration of its customers' life and savings policies, ensuring
good customer outcomes and providing a secure and compliant environment to
protect policyholder interests. It also adds value by writing profitable new
business in Sweden and the Netherlands and by undertaking value-adding
acquisitions of either companies or portfolios.

 

Consistent delivery of the Company strategy has enabled Chesnara to increase
its dividend for 17 years in succession.

 

Further details are available on the Company's website (www.chesnara.co.uk
(http://www.chesnara.co.uk/) ).

 

 

IMPORTANT INFORMATION

The Notes have not been and will not be registered under the United States
Securities Act of 1933, as amended (the "Securities Act") and may not be
offered, sold or delivered within the United States except in certain
transactions exempt from the registration requirements of the Securities Act.
Terms used in this paragraph have the meanings given to them by Regulation S
under the Securities Act.

 

This communication is only being distributed in the United Kingdom to persons
who are persons falling within Article 19(5) ("Investment professional") or
Article 49(2) (a) to (d) ("high net worth companies, unincorporated
associations etc.") of The Financial Services and Markets Act 2000 (Financial
Promotion) Order 2005 (as amended) or to whom this communication may otherwise
be lawfully distributed (all such persons together being referred to as
"relevant persons"). This announcement is directed only at relevant persons
and must not be acted on or relied on by persons who are not relevant persons.
Any investment or investment activity to which this announcement relates is
available only to relevant persons and will be engaged in only with relevant
persons.

 

UK MiFIR professionals/ECPs-only / No EEA or UK PRIIPS KID - Manufacturer
target market (UK MiFIR product governance) is eligible counterparties and
professional clients only (all distribution channels). No EEA or UK PRIIPs key
information document (KID) has been prepared as not available to retail in EEA
or UK.

 

This communication is not an offer of securities or investments for sale nor a
solicitation of an offer to buy securities or investments in any jurisdiction
where such offer or solicitation would be unlawful. No action has been taken
that would permit an offering of securities or possession or distribution of
this announcement in any jurisdiction where action for that purpose is
required. Persons into whose possession this announcement comes are required
to inform themselves about and to observe any such restrictions.

 

Credit ratings referred to in this communication should not be taken as
recommendations by a rating agency to buy, sell or hold Notes. They may be
revised, suspended or withdrawn at any time by the relevant rating agency.

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