Program management and legacy specialist, Randall & Quilter Investment Holdings Ltd. (R&Q), has announced an agreement to issue 13-year unsecured subordinated Tier 2 notes in an amount of USD 107.75 million.
R&Q states that it plans to use the proceeds of this issuance to support continued growth in its Program Management and Legacy Insurance operations, as the firm looks to capitalise on the increasing opportunities arising across the markets in which it operates.
The Notes have received approval by the Bermuda Monetary Authority (BMA) for inclusion in Tier 2 Ancillary Capital. Due in December 2033, the Notes can be called after five years at par.
R&Q explains that the coupon has been set at a rate of 3-month US dollar LIBOR, subject to a 0.5% floor and 2% cap, plus a margin of 6.75% for the first ten years and 8.25% thereafter. The Notes will be issued in a private placement, notes the firm.
William Spiegel, Deputy Executive Chairman, commented: “We are delighted to announce this successful transaction, which will further support our ability to drive growth across our two businesses. The Notes represent an advantageous source of capital given the favourable treatment they receive within our regulatory solvency and adjusted financial leverage positions.
“This placement, as well as our $100 million equity raise in May, means we will have accessed over $200 million of capital across diversified sources of funding during the course of this year. Our balance sheet strength positions us to continue to take advantage of the “hardening” insurance environment and increasing demand we are experiencing for our Legacy Insurance and Program Management solutions.”
