Amlin raises Tier Two debt and signs a new term loan facility
24 November 2004
Amlin plc (“Amlin”), the leading Lloyd’s insurer, has raised US$50 million of lower Tier Two subordinated debt through a private placement (the “Issue”) and has signed a new 12 month term loan facility of £30 million arranged by Lloyds TSB. Amlin will use the proceeds to replace the existing US$90 million Letter of Credit facility with State Farm Mutual Automobile Insurance Company procured in 2001.
The Issue, which will be denominated in US dollars, is callable on 24 November 2014 and pays a coupon of 7.11 per cent to give a spread of 295 basis points over the benchmark ten year US treasury yield. The Issue is expected to be rated Baa3 by Moody's and will be listed on the London Stock Exchange.
Amlin is the first Lloyd’s insurer to directly access this area of the capital markets. Commenting on the Issue, Finance Director Richard Hextall said, “We are very pleased with the positive response to the Issue and the continued support from our banking partners. The Issue is eligible to qualify as regulatory capital under the regime being introduced by the Financial Services Authority. It also diversifies Amlin’s funding mix to include longer term debt, provides us with greater capital management flexibility going forward and reduces our overall financing costs.”
Credit Suisse First Boston acted as structuring adviser and lead placement agent and Fox-Pitt, Kelton acted as a selling agent.
Enquiries:
Richard Hextall 0207 746 1000
Finance Director
Hannah Bale 0207 746 1118
Head of Communications
David Haggie/Peter Rigby 0207 417 8989
Haggie Financial
Notes for Editors:
Amlin is a recognised leader in the London insurance and reinsurance market, providing a global client base with risk management solutions. Amlin has four business specialisms: Aviation; Marine; UK commercial; and International property and casualty insurance and reinsurance. A FTSE 250 quoted company, Amlin owns 100% of its £1bn capacity for 2004, wholly written through Lloyd’s Syndicate 2001. The Syndicate is rated ‘A’ (Excellent) for financial strength by AM Best and A1 for financial strength by Moody’s.
