Tender Offer

RNS Number : 6968I

Old Mutual PLC

27 July 2012

 



Ref 75/12

27 July 2012

OLD MUTUAL ANNOUNCES RESULTS OF TENDER OFFER

NOT FOR DISTRIBUTION IN OR INTO OR TO ANY PERSON LOCATED OR RESIDENT IN THE UNITED STATES, ITS TERRITORIES AND POSSESSIONS, ANY STATE OF THE UNITED STATES OR THE DISTRICT OF COLUMBIA OR TO ANY U.S. PERSON (SEE ALSO "OFFER AND DISTRIBUTION RESTRICTIONS" BELOW)

On 19 July 2012, Old Mutual plc ("Old Mutual") announced its invitations (the "Offers") to the holders of its outstanding £500,000,000 7.125 per cent. Notes due 2016 (the "Senior Notes"), €500,000,000 Fixed to Floating Rate Step-Up Option B Undated Subordinated Notes (the "UT2 Notes") and £350,000,000 Perpetual Preferred Callable Securities (the "T1 Notes" and, together with the Senior Notes and UT2 Notes, the "Securities" and each a "Series") to tender their Securities for repurchase by Old Mutual for cash for aggregate consideration of up to £450,000,000 (or such lesser amount as Old Mutual may determine, in its sole discretion).

The Offers were made on the terms, and subject to the conditions, contained in the tender offer memorandum dated 19 July 2012 (the "Tender Offer Memorandum") prepared by Old Mutual, and were subject to the offer and distribution restrictions contained therein. Capitalised terms used but not defined in this announcement have the meanings given to them in the Tender Offer Memorandum.

In respect of the Senior Notes Offer, each of the Senior Notes Reference Yield, the Senior Notes Repurchase Yield and the Senior Notes Repurchase Price was determined at or around 11.00 a.m. (London time) today in accordance with the terms set out in the Tender Offer Memorandum.

Old Mutual hereby announces that:

(i)            the Total Repurchase Funds Available shall be increased to £459,229,031.75 (the "Total Repurchase Funds Available") from £450,000,000 and all references to the Total Repurchase Funds Available shall be deemed to be to such increased amount; and

(ii)           it will accept all valid tenders of Senior Notes pursuant to the Senior Notes Offer on the following pricing and acceptance terms:

Description of the Securities	Common code/ISIN	Senior Notes Acceptance Amount	Senior Notes Repurchase Spread	Senior Notes Reference Yield	Senior Notes Repurchase Yield	Senior Notes Repurchase Price
£500,000,000 7.125 per cent. Notes due 2016	045831655 / XS0458316550	£387,715,000	210 bps	0.388%	2.488%	£1,184.45

Old Mutual will also pay Accrued Interest in respect of Senior Notes accepted for repurchase pursuant to the Senior Notes Offer.

As the Total Amount Payable in respect of Senior Notes accepted for repurchase equals the Total Repurchase Funds Available, Old Mutual will not accept for repurchase any UT2 Notes or T1 Notes validly tendered pursuant to Tender Instructions in respect of the UT2 Notes Offer and the T1 Notes Offer respectively.

The Settlement Date for the Senior Notes Offer is expected to be 1 August 2012.

BNP Paribas, Citigroup Global Markets Limited, RBC Europe Limited and Nedbank Limited, London Branch are acting as Dealer Managers for the Offers and Lucid Issuer Services Limited is acting as Tender Agent.

The Dealer Managers
BNP Paribas 10 Harewood Avenue London NW1 6AA United Kingdom For information by telephone: [phone] Attention: Liability Management Group E-mail: [e-mail]	Citigroup Global Markets Limited Citigroup Centre Canada Square Canary Wharf London E14 5LB United Kingdom For information by telephone: [phone] Attention: Liability Management Group E-mail: [e-mail]
RBC Europe Limited Riverbank House London EC4R 3BF United Kingdom For information by telephone: [phone] Attention: Liability Management Group E-mail: [e-mail]	Nedbank Limited, London Branch 1st Floor Old Mutual Place 2 Lambeth Hill London EC4V 4GG United Kingdom For information by telephone: [phone] Attention: Liability Management Group E-mail: [e-mail]

THE TENDER AGENT

Lucid Issuer Services Limited Leroy House 436 Essex Road London N1 3QP United Kingdom Telephone: [phone] Attention: Paul Kamminga / Yves Theis E-mail: [e-mail]

Disclaimer: This announcement must be read in conjunction with the Tender Offer Memorandum. No offer or invitation to acquire or sell any securities is being made pursuant to this announcement.

Offer and Distribution Restrictions: The distribution of this announcement in certain jurisdictions may be restricted by law. Persons into whose possession this announcement or the Tender Offer Memorandum comes are required by each of Old Mutual, the Dealer Managers and the Tender Agent to inform themselves about, and to observe, any such restrictions. Please also see the Tender Offer Memorandum for a fuller description of such restrictions.

Enquiries

External communications
Patrick Bowes	UK	[phone]
Investor relations
Kelly de Kock	SA	[phone]
Media
William Baldwin-Charles		[phone] [phone]

Notes to Editors

Old Mutual

Old Mutual is an international long-term savings, protection and investment Group.  Originating in South Africa in 1845, the Group provides life assurance, asset management, banking and general insurance to more than 12 million customers in Africa, the Americas, Asia and Europe.  Old Mutual has been listed on the London and Johannesburg Stock Exchanges, among others, since 1999.

In the year ended 31 December 2011, the Group reported adjusted operating profit before tax of £1.5 billion (on an IFRS basis) and had £267 billion of funds under management from core operations.

For further information on Old Mutual plc, please visit the corporate website at www.oldmutual.com 

 

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