JRP Group PLC COMPLETION OF £250m TIER 2 CAPITAL TRANSACTION (4804N)
October 26 2016 - 8:23AM
UK Regulatory
TIDMJRP
RNS Number : 4804N
JRP Group PLC
26 October 2016
NEWS RELEASE www.jrpgroup.com
26 October 2016
JRP GROUP PLC
SUCCESSFUL COMPLETION OF GBP250 MILLION TIER 2 CAPITAL
TRANSACTION
JRP Group plc (JRP) today announces that, following the
completion of a successful roadshow, it has raised GBP250 million
of sterling denominated unrated 10 year Tier 2 capital. The bonds
will be listed on the Euro MTF market of the Luxembourg Stock
Exchange.
The capital that JRP has raised increases flexibility and
provides further room for growth at attractive rates of return. It
also enables us to repay the senior bank debt, which stood at
GBP98m at the end of June 2016. This debt did not benefit the
regulatory capital position of the Group. By increasing its
leverage, the Group has further diversified and strengthened its
regulatory capital structure. On a pro forma basis, the Group's
Solvency II capital ratio at 30 June 2016 would have increased to
approximately 151%.
The combination of this increased capital flexibility, the
increase in targeted synergies by GBP5m to GBP45m per annum, as
well as the material improvement in margin as the combined Group
sees the benefits of growing markets and a strong competitive
position, will ensure that JRP can continue its growth trajectory
whilst delivering attractive internal rates of return.
Key terms and conditions:
-- GBP250 million 10 year bullet structure
-- Tier 2 qualifying regulatory capital instrument under Solvency II
-- Bond issued by JRP, the Group's listed holding company, with
a subordinated guarantee provided by Just Retirement Limited, the
Group's main operating subsidiary
-- Annual interest rate of 9% payable semi-annually in arrears
Rodney Cook, Group Chief Executive, said:
"The support we have received from institutional investors
demonstrates confidence in JRP's business model and its prospects.
Along with a focus on efficient and conservative risk management,
our business has been built on the simple premise of excellent
customer service supported by unrivalled medical underwriting IP.
This is a clear differentiator for us with our customers, and now
with debt investors. The 9% cost of subordinated debt is
significantly below the attractive internal rates of return that
new business should generate once our synergies are realized, and
the proceeds bring our capital ratios more in line with our peer
group."
Enquiries
Investors / Analysts Media
James Pearce, Group Director Stephen Lowe, Group Communications
of Corporate Finance and Director
Investor Relations
Telephone: +44 (0) 7715 Telephone: +44 (0) 1737
085 099 827 301
james.pearce@justretirement.com press.office@justretirement.com
Temple Bar Advisory
Alex Child-Villiers
William Barker
Telephone: +44 (0) 20 7002
1080
A copy of this announcement will be available on the Group's
website www.jrpgroup.com
JRP GROUP PLC
GROUP COMMUNICATIONS
Vale House, Roebuck Close
Bancroft Road, Reigate
Surrey RH2 7RU
Not for release, publication or distribution, directly or
indirectly, in or into the United States or any other jurisdiction
where to do so would be unlawful.
This communication is not an offer of securities for sale in the
United States or any other jurisdiction where to do so would be
unlawful. JRP has not registered, and does not intend to register,
any portion of the securities referred to in this communication in
any of these jurisdictions and does not intend to conduct a public
offering of securities in any of these jurisdictions. In
particular, the securities have not been and will not be registered
under the Securities Act of 1933, as amended (the "Securities
Act"), and may not be offered or sold within the United States or
to, or for the account or benefit of, U.S. persons (as defined in
Regulation S under the Securities Act) except pursuant to an
exemption from, or in a transaction not subject to, the
registration requirements of the Securities Act and in compliance
with any applicable state securities laws. Outside the United
States, the offer is being made to non-U.S. persons in accordance
with Regulation S under the Securities Act.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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