Insurance Australia Group Ltd · ASX:IAG
Insurance Australia — Debt Investor Presentation (April 2007)
13 slides from Insurance Australia's debt investor presentation, Apr 3, 2007
Slide 1: ASX cover letter: investor presentation on IAGPA reset terms
Insurance Australia Group Limited ABN 60 090 739 923 388 George Street Sydney NSW 2000 Telephone 02 9292 9222 iag.com.au 3 April 2007 Manager, Company Announcements Office Australian Stock Exchange Limited Level 4, Exchange Centre 20 Bridge Street SYDNEY NSW 2000 Dear Sir/Madam INSURANCE AUSTRALIA G
Slide 2: RPS Reset
Insurance Australia Group Limited RPS Reset 3 April 2007 1
Slide 3: Disclaimer
Disclaimer The information included in this presentation has been prepared by Insurance Australia Group Limited ("IAG" or the "Company") and has been extracted entirely from documents or materials publicly filed by the Company with the Australian Stock Exchange and /or the Australian Securities and
Slide 4: Executive Summary
Executive Summary • IAG has on issue $350 million of Reset Preference Shares (“RPS”) issued in June 2002 with a Margin of 1.9% (ASX code “IAGPA”) • Holders have been sent Reset Notices informing them of the Reset terms – IAG wishes to reset the Margin, the Market Rate and the next Reset Date – The p
Slide 5: Reset Terms
Reset Terms The following are the Reset terms proposed by IAG as set-out in the Reset Notice: RESET DATE The next Reset Date will be 15 June 2012 (5 years from the current Reset Date). MARKET RATE (expressed as a percentage per annum) means the average of the mid-point of the quoted 5 year swap refe
Slide 6: Terms
Terms Issuer Insurance Australia Group Limited Security Reset Preference Shares, listed on ASX as “IAGPA” Face Value $100 per RPS Dividend A preferential non-cumulative Dividend fixed until the next Reset Date (15 June 2012) at a Margin to the Market Rate which is expected to be fully franked. Divid
Slide 7: Terms (cont)
Terms (cont) Exchange by IAG may Exchange some or all RPS on a Reset Date or earlier in respect of all of the IAG RPS following 7% 10% the occurrence of a Tax Event or Regulatory Event, certain takeovers or schemes of arrangement. On Exchange, IAG may: • Convert the RPS into Ordinary Shares; or 28%
Slide 8: Terms (cont)
Terms (cont) Conversion The rate at which the RPS will convert into Ordinary Shares will be calculated by reference to Ratio the average of the daily volume weighted average sale price (“VWAP”) of Ordinary Shares sold on ASX during the 20 Business Days immediately preceding the Exchange Date. All co
Slide 9: Holder Options
Holder Options Holders may respond to the Reset Notice as follows: Do nothing – continue with their current RPS holding based on the new reset terms Request Exchange – Holders wishing to Exchange some, or all, of their RPS must respond with a Holder Exchange Notice by 5.00pm (AEST) 26 April 2007 Bro
Slide 10: Reset Process
Reset Process In response to the Exchange Notices IAG may do one of the following: – Convert RPS into $100 of ordinary IAG shares based on 20 day VWAP (no conversion discount applies) – Redeem RPS and deliver $100 to Exchanging holders – Procure the acquisition of RPS by new investors and deliver $1
Slide 11: Top-up Offer
Top-up Offer IAG is offering Holders the ability to increase their RPS holding on the reset terms through a Top-up Offer – RPS can be purchased at $100 each – No brokerage is payable – Holders wishing to increase their RPS holding will be allocated RPS that are the subject of Holder Exchange Notices
Slide 12: Key Reset Dates
Key Reset Dates Key dates applying to the Reset are as follows: Event Date Holder Exchange Notice Closing Date 5.00pm (AEST) 26 April 2007 Exchange method announced by IAG and By 16 May 2007 the Additional Margin (if any) First Reset Date 15 June 2007 Dividend Payment Dates 15 June / 15 December Nex
Slide 13: Contacts
Contacts IAG Mike Woods Head of Group Finance and Treasury (612) 9292 3156 Anne O’Driscoll Head of Investor Relations & Capital Planning (612) 9292 3169 Alan Cazalet Corporate Treasurer (612) 9292 8451 Macquarie (advisor to IAG) Jacqui Vanzella Division Director (612) 8232 4904 Cameron Duncan Divisi
Insurance Australia Group — Debt Investor Presentation (April 2007) on 6ix