Canadian dollar debt issuance

RNS Number : 3621M

Standard Life plc

17 September 2012

 



Standard Life Canada today announced its first Canadian dollar debt issuance raising C$400 million principal amount of 3.938% fixed/floating subordinated debentures with a first call date of 21 September 2017 (the "Debentures").

This initiative further optimises the financial structure of the Group and builds on past actions to re-shape our balance sheet.  It helps to re-leverage the Group and, through our ability to access the debt markets in Canada, provides capital at a very attractive cost.

The strong market demand, which was evidenced by a heavily over subscribed order book, has enabled Standard Life Canada to price competitively at the low end of its target range, thereby underlining the attractiveness of Standard Life Canada's credit, the strength of its recent performance and its future strategic direction.

The Debentures will bear interest at a fixed rate of 3.938% for five years and thereafter at a rate of 2.1% over the three month CDOR. The Debentures have a legal final maturity of 21 September 2022.

The proceeds from the debt issuance will initially be held in Canada for general corporate purposes and, subject to local regulatory approval, may be used to repay in whole or in part C$400m of existing internal subordinated debt to Standard Life plc.  

The Debentures are expected to be rated "A" by Standard & Poor's.

Jackie Hunt, Chief Financial Officer commented today: "As part of our active capital management programme, we have taken advantage of favourable market conditions to optimise the capital position of both Standard Life Canada and the Group. The strong order book and successful placement is a powerful signal of investors' confidence in Standard Life Canada's financial strength and strategic plans."

The syndicate for the offering is being co-led by RBC Capital Markets and BMO Capital Markets with Bank of America Merrill Lynch and Casgrain acting as co-managers. The offering is expected to close on 21 September 2012.

Contact details:

Institutional Equity Investors
Lorraine Rees	0207 872 4124/07738 300 878
Jakub Rosochowski	0131 245 8028/07515 298 608
Craig Cameron	0131 245 3848/07515 298 330
Media
Nicola McGowan	0131 245 4016/07872 191 341
Barry Cameron	0131 245 6165/07712 486 463
Debt Investors
Scott Forrest	0131 246 6045
Nick Mardon	0131 245 6371

The Debentures have not been and will not be registered in the United States under the United States Securities Act of 1933, as amended (the "Securities Act"), or the securities laws of any state of the United States and may not be offered, sold or delivered, directly or indirectly in the United States or to, or for the account or benefit of, a "U.S. person" (as defined in Regulation S under the Securities Act) absent registration or an applicable exemption from such registration requirements. This press release does not constitute an offer to sell or a solicitation to buy securities in the United States and any public offering of the securities in the United States must be made by means of a prospectus.

 

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