REG - Randall & Quilter Ld - Issuance of Subordinated Notes

R&Q Insurance HoldingsAnnouncement

04/12/2020 07:01

RNS Number : 5056H
  
Randall & Quilter Inv Hldgs Ltd
  
04 December 2020
  
 

 
 
Randall & Quilter Investment Holdings Ltd.
 
Issuance of Subordinated Notes
 
4 December 2020
 
Randall & Quilter Investment Holdings Ltd. (AIM-RQIH) ("R&Q"), the non-life global specialty insurance company focusing on Program Management and Legacy Insurance, is pleased to announce that it has signed an agreement to issue 13-year unsecured subordinated Tier 2 notes (the "Notes") in an amount of $107.75 million.  The Notes have received approval by the Bermuda Monetary Authority for inclusion in Tier 2 Ancillary Capital.
 
R&Q intends to use the proceeds of the issuance to support the ongoing growth in its Program Management and Legacy Insurance businesses as it continues to capitalise on the increasing opportunities that are arising across the markets in which it operates.
 
The Notes will be due in December 2033 and can be called after 5 years at par. The coupon has been set at a rate of 3-month US dollar LIBOR, subject to a 0.5% floor and 2% cap, plus a margin of 6.75% for the first ten years and 8.25% thereafter. The Notes will be issued in a private placement. 
 
Commenting on the issuance, William Spiegel, Deputy Executive Chairman, said:
 
"We are delighted to announce this successful transaction, which will further support our ability to drive growth across our two businesses. The Notes represent an advantageous source of capital given the favourable treatment they receive within our regulatory solvency and adjusted financial leverage positions.  This placement, as well as our $100 million equity raise in May, means we will have accessed over $200 million of capital across diversified sources of funding during the course of this year. Our balance sheet strength positions us to continue to take advantage of the "hardening" insurance environment and increasing demand we are experiencing for our Legacy Insurance and Program Management solutions."
 
ENDS
 



Enquiries to:
Randall & Quilter Investment Holdings Ltd.
Ken Randall
William Spiegel


 
www.rqih.com
+44 (0)7831 145440
+001 917 826 5877




Numis Securities Limited (Nominated Adviser and Broker)
Stuart Skinner / Huw Jeremy
Charles Farquhar
Shore Capital Stockbrokers Limited (Joint Broker)
Stephane Auton
James Thomas


+44 (0) 207260 1000
 
 
+44 (0)20 7408 4090




FTI Consulting
Edward Berry
Tom Blackwell


+44 (0)20 3727 1046



 
About R&Q
 
R&Q is a non-life global specialty insurance company operating two core, highly complementary businesses: Program Management and Legacy Insurance. Both businesses are leaders in markets with high barriers to entry and significant secular growth opportunities.  
 
Legacy Insurance generates profits and capital extractions from expert management of run-off non-life insurance portfolios. Program Management generates commission income from its licensed (and rated) carriers in the US, EU and the UK, writing niche and profitable program business, largely on behalf of highly rated reinsurers.
 
Legal Entity Identifier (LEI): 2138006K1U38QCGLFC94
 
Website: http://www.rqih.com/
 
 
 

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