Global insurer and reinsurer SCOR has announced that it’s successful placed a perpetual deeply subordinated restricted Tier 1 Regulation S notes issue in the amount of $125 million.
The issue price of the New Notes is 99.125% and SCOR states that it intends to use the proceeds of the issuance for general corporate purposes.
The re/insurer explains that these new notes will be assimilated and form a single series with existing $625 million perpetual deeply subordinated restricted Tier 1 notes issued on March 13th, 2018. Furthermore, the new notes will bear the same terms and conditions as the notes issued on March 13th.
At the same time, SCOR has revealed that subject to market conditions and regulatory approval, it is to redeem the CHF 125 million undated subordinated note line, issued on October 24th, 2018, and callable in October 2020 using proceeds of the new notes.
For this latest placement the coupon is 5.25% and the first call date is March 13th, 2029, resetting every five years thereafter at the prevailing 5-year U.S. Treasury yield plus 2.37% per annum.
SCOR states that the proceeds from the new notes were swapped into EUR, which provided an effective yield cost to the re/insurer of 3.115%. Settlement is expected on December 17th, 2019.
The firm expects S&P to assign an A- rating to the new notes.
Denis Kessler, SCOR’s Chairman and Chief Executive Officer (CEO), commented: “The success of today’s USD placement through a tap of our outstanding Tier 1 instrument issued last year demonstrates the Group’s ability to pursue an active and innovative capital management policy and secure long-term funding on the best conditions. The notes were oversubscribed by five times which bears witness to the quality and strength of SCOR’s credit worthiness.”
