DLG announces pricing of £260m subordinated debt

RNS Number : 4262O

Direct Line Insurance Group PLC

29 May 2020

 

DLG announces pricing of £260m subordinated debt

NOT FOR DISTRIBUTION IN OR INTO OR TO ANY PERSON LOCATED OR RESIDENT IN THE UNITED STATES, ITS TERRITORIES AND POSSESSIONS (INCLUDING PUERTO RICO, THE U.S. VIRGIN ISLANDS, GUAM, AMERICAN SAMOA, WAKE ISLAND AND THE NORTHERN MARIANA ISLANDS), ANY STATE OF THE UNITED STATES AND THE DISTRICT OF COLUMBIA (THE "UNITED STATES") OR TO ANY U.S. PERSON (AS DEFINED IN REGULATION S UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED) OR TO ANY PERSON LOCATED OR RESIDENT IN ANY OTHER JURISDICTION WHERE IT IS UNLAWFUL TO DISTRIBUTE THIS ANNOUNCEMENT.

29 May 2020

Direct Line Insurance Group plc announces pricing of its new £260,000,000 Subordinated Notes.

Direct Line Insurance Group plc (the "Group" or the "Issuer") is pleased to announce the pricing of £260,000,000 4.000% Subordinated Tier 2 Notes due 2032. The issuance is expected to be completed on 5 June. The Notes are expected on issue to be rated Baa1 (Hyb) by Moody's Investor Services.

The Issuer's existing £250,000,000 Fixed/Floating Rate Guaranteed Subordinated Notes due 2042 issued on 27 April 2012 with ISIN: XS0773947618 are callable at the option of the Issuer on 27 April 2022 .

Commenting on the transaction Tim Harris, Chief Financial Officer, said:

" This transaction builds on our strategic objective outlined at the Capital Markets Day in November 2019 to have an efficient capital structure for the medium to long-term, by improving the debt profile of the Group and reducing refinancing risk . It also further improves our financial flexibility and liquidity during the heightened uncertainty in the macroeconomic environment."

"This does not change the target I reiterated at our Capital Markets Day that in normal circumstances we expect to operate around the middle of our 140% to 180% solvency capital ratio risk appetite range."

For further information, please contact:

Paul Smith

Director of Investor Relations

Tel: [phone]

Important Notices

This announcement is for information only and does not constitute or form part of, and should not be construed as, an offer to sell nor is it a solicitation of an offer to buy securities in the United States or in any jurisdiction in which, or to any persons to whom, such offering, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any jurisdiction. Please note that the information contained in this communication is addressed to and/or targeted at persons who are residents of particular countries only and is not intended for use and should not be relied upon by any person outside these countries.

The Notes have not been and will not be registered under the U.S. Securities Act of 1933, as amended (the "Securities Act") or with any securities regulatory authority of any state or other jurisdiction of the United States. Subject to certain exceptions, Notes may not be offered, sold or delivered within the United States or to, or for the account or benefit of, U.S. persons.

This announcement may include projections and other "forward-looking" statements within the meaning of applicable securities laws. Any such projections or statements reflect the current views of the Company about future events and financial performance. The use of any of the words "expect," "anticipate," "continue," "will," "project," "should," "believe," "plans," "intends" and similar expressions are intended to identify forward-looking information or statements. Although the Company believes that the expectations and assumptions on which such forward-looking statements and information are reasonable, undue reliance should not be placed on the forward-looking statements and information because the Company can give no assurance that such statements and information will prove to be correct. Since forward-looking statements and information address future events and conditions, by their very nature they involve inherent risks and uncertainties.

The forward-looking statements and information contained in this announcement are made as of the date hereof and the Company undertakes no obligation to update publicly or revise any forward-looking statements or information, whether as a result of new information future events or otherwise, unless so required by applicable securities laws.

The Notes are not intended to be offered, sold or otherwise made available, and should not be offered, sold or otherwise made available, to retail investors in the European Economic Area or the United Kingdom. For these purposes, a "retail investor" means a person who is one (or more) of: (i) a retail client as defined in point (11) of Article 4(1) of Markets in Financial Instruments Directive 2014/65/EU (as amended, "MiFID II"); or (ii) a customer within the meaning of Directive (EU) 2016/97, where that customer would not qualify as a professional client as defined in point (10) of Article 4(1) of MiFID II.

Manufacturer target market (MIFID II product governance) is eligible counterparties and professional clients only (all distribution channels). No PRIIPs key information document (KID) has been prepared as not available to retail in EEA.

LEI: 213800FF2R23ALJQOP04

 

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