Phoenix Group Holdings Trading Update and Credit Investor Roadshow (7620T)
January 10 2017 - 2:00AM
UK Regulatory
TIDMPHNX TIDM37TL
RNS Number : 7620T
Phoenix Group Holdings
10 January 2017
THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION
Trading update and announcement of roadshow with credit
investors
Phoenix Group Holdings ("Phoenix" and, together with its
subsidiaries, the "Group") announces that it has generated a total
of GBP486 million of cash from the Group's operating companies in
2016. Of this total cash generation, GBP117 million has been
generated from the integration of the AXA Wealth pensions and
protection businesses ("AXA Businesses") that were acquired on 1
November 2016.
The Group has therefore achieved its 2016 target for cash
generation of between GBP350 million to GBP450 million, which was
announced at the time of its 2015 year end results on 23 March
2016. Furthermore, Phoenix reiterates its expectation that it will
generate a total of at least GBP250 million of cash from the
integration of the AXA Businesses within 6 months of completion of
the acquisition.
During December 2016, the Group repaid the entirety of the
GBP182 million of bank debt used to finance the acquisition of the
AXA Businesses. In addition, the GBP250 million short-term bank
facility relating to the Abbey Life acquisition has been converted
into a tranche of the Group's existing bank Revolving Credit
Facility ("RCF"), increasing the size of the RCF from GBP650
million to GBP900 million. During December 2016, GBP50 million of
the RCF was repaid, leaving GBP850 million of the RCF outstanding
as at 31 December 2016.
On 21 December 2016, PGH Capital PLC established a
GBP3,000,000,000 Euro Medium Term Note Programme guaranteed on a
senior or subordinated basis by Phoenix. PGH Capital PLC has
mandated Citigroup Global Markets Limited, J.P. Morgan Securities
plc, Lloyds Bank plc, Merrill Lynch International and The Royal
Bank of Scotland plc (trading as NatWest Markets) to arrange a
series of credit investor meetings in London commencing 12 January
2017. A benchmark Sterling denominated 5.5 year Tier 3 transaction
to be guaranteed on a subordinated basis will follow, subject to
market conditions.
The net proceeds from the proposed debt issuance are expected to
be used to further reduce the outstanding amount of the Group's
bank debt.
Enquiries
Equity Investors/Analysts:
Sam Perowne, Head of Investor Relations, Phoenix Group
+44 (0)20 3735 0021
Debt Investors:
Rashmin Shah, Group Treasurer, Phoenix Group
+44 (0)20 3735 0059
Media:
Neil Bennett, Tom Eckersley, Maitland
+44 (0)20 7379 5151
The person responsible for arranging for the release of this
announcement on behalf of Phoenix is Gerald Watson, Group Company
Secretary.
Disclaimer
This announcement is for information purposes only and does not
constitute an offer to sell or the solicitation of an offer to buy
any securities.
This announcement does not constitute and shall not, in any
circumstances, constitute a public offering nor an invitation to
the public in connection with any offer within the meaning of the
Directive 2010/73/EU of the Parliament and Council of November 4,
2003 as implemented by the Member States of the European Economic
Area (the "Prospectus Directive"). Any offer and sale of the notes
will be made pursuant to an exemption under the Prospectus
Directive, as implemented in Member States of the European Economic
Area, from the requirement to produce a prospectus for offers of
securities.
Stabilisation: FCA/ICMA
This information is provided by RNS
The company news service from the London Stock Exchange
END
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