Legal & General launches tender offer for £600m subordinated notes

Published 27/08/2025, 08:44
Legal & General launches tender offer for £600m subordinated notes

LONDON - Legal & General Group Plc announced on Wednesday a tender offer to purchase its £600 million Fixed Rate Reset Subordinated Notes due 2064, as part of a proactive management of the company’s expected redemption profile.

The British insurer is offering to buy back the notes at a purchase price of 100.00 percent of their nominal amount, according to a press release statement. The company said the offer is conditional on the successful issuance of new euro-denominated Tier 2 notes.

Legal & General intends to accept for purchase an aggregate nominal amount of notes no greater than the aggregate nominal amount of the new notes to be issued, converted into sterling equivalent. The company plans to cancel any notes purchased through the tender offer.

The notes, which carry an initial interest rate of 5.50 percent per annum, have been classified as Tier 2 own funds under Solvency II transitional arrangements. These transitional arrangements will expire on January 1, 2026.

Noteholders who wish to participate must submit valid tender instructions by 4:00 p.m. London time on September 5, 2025. The settlement date is expected to be September 9, 2025, subject to conditions.

Legal & General said it will also pay accrued interest on any notes accepted for purchase. If the tender offer is oversubscribed, the company intends to accept notes on a pro rata basis.

The insurer indicated that noteholders who tender their notes may receive preference in the allocation of the new notes, though this is at the company’s discretion and subject to the standard new issue procedures.

Banco Santander, BNP Paribas, Deutsche Bank, HSBC, Morgan Stanley and NatWest Markets are acting as dealer managers for the offer.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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