Statement on Royal London Interest in Pearl’s cash offer for Resolution
19 October 2007
Communications for Confirmation of Interest
19 October 2007
NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, IN WHOLE OR IN PART, IN, INTO OR FROM ANY JURISDICTION WHERE TO DO SO WOULD CONSTITUTE A VIOLATION OF THE RELEVANT LAWS OF SUCH JURISDICTION
The Royal London Mutual Insurance Society Limited ("Royal London")
£400,000,000 6.125% Perpetual Cumulative Step up Subordinated Guaranteed Notes of RL Finance Bonds plc, guaranteed by The Royal London Mutual Insurance Society Limited (the "Notes")
ISIN number M023696894
Statement on Royal London Interest in Pearl's cash offer for Resolution
Royal London notes the statement issued today by Pearl Group Limited ("Pearl") of a cash offer by Impala Holdings Limited, a subsidiary of Pearl, for Resolution. The binding agreement Royal London has entered into with Pearl to acquire certain Resolution assets for a total consideration of approximately £1.25 billion (subject to certain post-closing adjustments) if Pearl's offer is successful remains in place, as does Royal London's agreement to provide £0.3 billion of the debt funding for Pearl's offer.
There can be no certainty that Royal London will acquire the assets in Resolution given that the transaction is conditional upon Pearl's offer for Resolution being successful. A further announcement will be made when appropriate.
Based on announcements to date from the major ratings agencies, it is expected that any acquisition of certain Resolution assets by Royal London will not have a material impact on the rating of the Subordinated Guaranteed Notes issued by RL Finance Bonds plc, a subsidiary of Royal London.
for further information please contact:
Royal London Group
Alasdair Buchanan
Tel: +44 (0) 131 456 7133
Mobile: +44 (0) 7919 170413
Financial Dynamics:
Robert Bailhache
Ed Gascoigne-Pees
Andrew Waterworth
Tel: +44 (0)20 7831 3113
Editors notes:
Royal London Group, is a specialist financial service provider. Its businesses focus on those sectors of the market which value premium propositions, operating through a number of brands:
- Scottish Life – UK pensions market
- Bright Grey – UK protection market
- Scottish Life International – offshore investment markets
- RLAM – fund management
- RLAS – life and pensions administration
Royal London is one of the stronger life and pension companies in the UK, and has a strong track record for with-profits performance.
Royal London is the largest mutual life and pensions company in the UK with Group funds under management of £32.7 billion. Group businesses serve around three million customers and employ 2,570 people (figures quoted are as at 30 June 2007).
Subordinated Liabilities
Perpetual Cumulative Step-up Subordinated Guaranteed Notes
On 14 December 2005 RL Finance Bonds plc, a wholly owned subsidiary of Royal London, issued the Perpetual Cumulative Step-up Subordinated Guaranteed Notes. The issue price of the Notes was 99.676% of the principal amount of £400m. The Notes are guaranteed by Royal London. The proceeds of the issue were loaned to Royal London on the same interest, repayment and subordination terms as those applicable to the Notes. The Notes have no maturity date but the issuer has the option to redeem all of them at their principal amount on 15 December 2015 and at three monthly intervals thereafter. Interest is payable at a fixed rate of 6.125% per annum for the period to 15 December 2015, payable annually in arrears on 15 December each year.