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HAMILTON, BERMUDA - Hiscox Ltd (LSE:LON:HSX) has initiated a tender offer for its £275 million Fixed to Floating Rate Callable Subordinated Notes due 2045, as part of a strategic move to refinance part of its debt and manage its debt maturity profile. This offer, announced on Monday, invites holders of the notes to tender them for purchase by the company for cash.
The purchase price set for the notes is 100.55% of their principal amount. In addition, Hiscox will pay an accrued interest payment for any notes accepted for purchase. The total amount of notes accepted for purchase will not exceed the principal amount of new notes to be issued, with the exact amount to be determined and announced following the pricing of the new notes.
The tender offer is contingent upon the successful completion of a new series of U.S. dollar-denominated fixed to floating rate callable subordinated notes, which Hiscox also announced plans to issue, subject to market conditions. The decision to purchase any tendered notes is at the sole discretion of Hiscox and is dependent on the new financing condition being met or waived by the company.
Holders of the existing notes have the opportunity to tender their notes until the expiration deadline at 4.00 p.m. London time on June 11, 2025. The settlement date, subject to the satisfaction or waiver of the new financing condition, is expected to be on June 13, 2025.
The new notes offering will not be available in the United States or to U.S. persons, in compliance with the Securities Act of 1933. Hiscox has made it clear that the tender offer and the new notes offering are subject to restrictions in certain jurisdictions and will be conducted in accordance with applicable laws and regulations.
This strategic financial maneuver by Hiscox is intended to provide note holders with liquidity options ahead of the first call date of the existing notes and to potentially allow them to reinvest in the new series of notes. The company has emphasized that the tender offer memorandum contains important details and should be reviewed carefully by note holders.
The information in this article is based on a press release statement from Hiscox Ltd.
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