Business
Bond Issue
Bond Issue.
About this update from Standard Life Plc
[{"type":"text","content":"\n \nRNS Number : 9884K Phoenix Group Holdings 30 June 2014 \n \n\nThis announcement is not for release in the United States of America, Canada, Australia, South Africa and Japan or in any other jurisdiction in which offers or sales would be prohibited by applicable law.\n \n30 June 2014\n \nPhoenix Group announces a £300 million senior unsecured bond issue\n \nHighlights\n \n· Priced a £300 million 7 year Sterling-denominated senior unsecured bond at an annual coupon of 5.75%\n· Strong demand from fixed income institutional investors following a three day investor roadshow\n· Proceeds will be used to refinance a portion of the Group's existing Impala silo senior bank debt\n· Supports Phoenix's plans to unify the two existing bank debt facilities into a single facility\n· Phoenix continues to target an investment grade credit rating\n \nSummary of transaction\n \nPhoenix Group Holdings (\"Phoenix\" and, together with its subsidiaries, the \"Group\") announces that it has priced a £300 million 7 year Sterling denominated senior unsecured bond (the \"Bond\"). The Bond will be issued by PGH Capital Limited, a financing subsidiary of Phoenix Group Holdings, and guaranteed by Phoenix. The Bond will be issued on 7 July 2014 with a maturity date of 7 July 2021.\n \nThe successful Bond issue is a further milestone in the financial strengthening of Phoenix and an important step towards gaining wider access to the debt capital markets as it seeks to further simplify the Group's debt structure. The net proceeds from the issue will be used to refinance part of the Group's existing Impala silo senior bank debt1.\n \nThe transaction saw strong demand from fixed income institutional investors with an order book that was two times over-subscribed and enabling Phoenix to price the Bond at the bottom of its target range, with the annual coupon being 5.75%.\n \nIn addition to re-financing a proportion of the Group's existing Impala silo bank debt, the transaction is expected to provide greater financial flexibility for the Group in future, including:\n \n· Reducing the Group's reliance on bank finance by accessing t...