Lloyd’s, the world’s leading specialist insurance market, announced that it will repurchase the local currency equivalent of £102 million of its outstanding debt securities, following its invitation to holders to submit offers to sell their holdings. Lloyd’s had offered to purchase up to £100m of the securities.
Lloyd’s will purchase a principal amount of £59,631,000 of its Perpetual Subordinated Capital Securities at a cost of £35,778,600 and a principal amount of €47,315,000 of its Subordinated Notes maturing in 2024 at a cost of €33,120,500. Lloyd’s will additionally pay accrued interest on the purchased securities.
Following these purchases, £440,369,000 principal amount of the Perpetual Subordinated Capital Securities and €252,685,000 of the Subordinated Notes maturing in 2024 will remain outstanding. Lloyd’s will not purchase any of its sterling Subordinated Notes maturing in 2025 as a result of the invitation and the outstanding principal amount of these securities will remain at £300,000,000.
Luke Savage, Lloyd’s Finance Director, said: “The decision to buy back some of our debt was a prudent move, which took advantage of our strong capital position, favourable market conditions, and perceived interest from holders of our debt.”
A record level of capital at 1 January 2009, as well as additional contributions to Lloyd’s Central Fund in April, means that Lloyd’s capital position will not be materially affected following these purchases.
