Resolution Life successfully completes $750 million Tier 2 debt issuance
Why we think this is good
The RNS announcement indicates that Resolution Life has successfully issued $750 million of Tier 2 notes, which will enhance the company's financial flexibility and capital position. The strong investor demand and the notes being assigned investment-grade ratings by Moody's and Fitch are positive developments. The proceeds will be used to repay existing debt and fund growth opportunities, suggesting the company is in a strong financial position. However, as this is a debt issuance and not a trading update or profit upgrade, the maximum sentiment score is capped at GOOD.
Key Points
- Issuance of $750 million of 6.75% Tier 2 notes due 2035
- Strong investor demand with peak order book exceeding $3.25 billion
- Notes assigned Baa3 by Moody's and BB+ by Fitch
- Proceeds to be used to repay debt and fund growth opportunities
Summary
Resolution Life, a global life insurance group, has successfully issued $750 million of 6.75% Tier 2 notes due 2035. The issuance was well received by investors, with the peak order book exceeding $3.25 billion. The notes have been assigned investment-grade ratings by Moody's and Fitch. The proceeds will be used to repay existing debt and fund growth opportunities, including acquisitions and reinsurance arrangements, further enhancing the company's financial flexibility and capital position.