Source - LSE Regulatory
RNS Number : 6472A
Hiscox Ltd
03 June 2021
 

 

FOR DISTRIBUTION ONLY OUTSIDE THE UNITED STATES TO PERSONS OTHER THAN U.S. PERSONS (AS DEFINED IN REGULATION S UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED). NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION IN OR INTO, OR TO ANY PERSON LOCATED OR RESIDENT IN, ANY OTHER JURISDICTION WHERE IT IS UNLAWFUL TO RELEASE, PUBLISH OR DISTRIBUTE THIS ANNOUNCEMENT.

 

Hiscox Ltd

(incorporated with limited liability in Bermuda with registered no. 38877)

announces consent solicitation in respect of its outstanding

£275,000,000 Fixed to Floating Rate Callable Subordinated Notes due 2045

 (ISIN: XS1323450236)

 (the "Notes")

(i)        for the purposes of the floating rate of interest applicable to the Notes from 24 November 2025 (the "Fixed Rate End Date"), (a) the Floating Interest Rate (as defined in the Conditions) will be determined by reference to the Sterling Overnight Index Average ("SONIA") (using Compounded Daily SONIA (as defined in the Consent Solicitation Memorandum (as defined below)) with a 5-day lag methodology and payable, subject as provided in the Conditions, quarterly) and not the 3-month Sterling London Inter Bank Offered Rate ("LIBOR"); (b) an adjustment (the "Reference Rate Adjustment") will be made to reflect the economic difference between the LIBOR and SONIA rates, as further described below; and (c) the initial margin of 4.076 per cent. per annum and the step-up margin of 1.00 per cent. per annum will remain unaltered; and

(ii)       new fallback provisions relating to SONIA (including fallback provisions in case a Benchmark Event occurs with respect to SONIA) are included.

Using the principles outlined in the ISDA IBOR Fallback Supplement, the Reference Rate Adjustment for the Notes will be the rate specified on Bloomberg screen "SBP0003M Index" in relation to 3-month Sterling LIBOR, as further described in the Consent Solicitation Memorandum. As at the date of this announcement, and as a result of the Financial Conduct Authority's 5 March 2021 announcement, the rate specified on Bloomberg screen "SBP0003M Index" in relation to 3-month Sterling LIBOR has been fixed at 0.1193 per cent., and such rate (subject to any corrections or adjustments made to such rate by Bloomberg in accordance with its rule book as at the determination date (as defined in the Consent Solicitation Memorandum referred to below)) will be the Reference Rate Adjustment in respect of the Notes.

This announcement does not contain the full terms and conditions of the Consent Solicitation, which are contained in the Consent Solicitation Memorandum dated 3 June 2021 (the "Consent Solicitation Memorandum") prepared by the Issuer, which is available to Eligible Noteholders (as defined below) from the Tabulation Agent (including on its website via the link http://www.lucid-is.com/hiscox).

Unless otherwise indicated, capitalised terms used but not otherwise defined in this announcement have the meanings given in the Consent Solicitation Memorandum.

 

Details of the Notes

Notes

ISIN /  Common Code

Prevailing interest rate
(per annum)

First Call Date and Fixed Rate End Date

Maturity Date*

Outstanding principal amount

£275m Notes due 2045

XS1323450236 / 132345023

6.125 per cent.

24 November 2025

November 2045

£275,000,000

*    The Maturity Date is the Interest Payment Date falling in or nearest to November 2045.

Notice of Meeting in respect of the Notes

A notice (the "Notice") convening a meeting (the "Meeting") of the holders of the Notes (the "Noteholders"), to be held via teleconference on 28 June 2021, has been given to Noteholders in accordance with the Conditions on the date of this announcement, including by way of release through the regulatory news service of the London Stock Exchange plc and by delivery to the Clearing Systems.

In light of the ongoing developments in relation to coronavirus (COVID-19), and current guidance issued by the Bermuda and United Kingdom governments including restrictions on travel, it may be impossible, impractical or inadvisable to hold the Meeting at a physical location. Therefore, the Issuer has determined that the Meeting will be held electronically via teleconference rather than physically in person and, in accordance with the provisions of the Trust Deed, has requested that Citicorp Trustee Company Limited (the "Trustee") prescribe appropriate regulations regarding the holding of the Meeting via teleconference. The Meeting will be held via teleconference using a platform hosted by the chairman of the Meeting to allow attendees to participate electronically. Details for accessing the Meeting will be made available to proxies who have been duly appointed under a block voting instruction and to holders of forms of proxy, in each case issued in accordance with the procedures set out in the Consent Solicitation Memorandum. Any Noteholders who indicate to the Tabulation Agent (the contact details for which are set out below) that they wish to participate electronically in, or otherwise be represented on, the teleconference for the Meeting (rather than being represented by the Tabulation Agent) will be provided with further details about attending the Meeting.

Eligible Noteholders

The Consent Solicitation Memorandum and any other documents or materials relating to the Consent Solicitation are only for distribution or to be made available to persons who are (i) located and resident outside the United States and not U.S. persons or acting for the account or benefit of a U.S. person (in each case, as defined in Regulation S under the United States Securities Act of 1933, as amended (the "Securities Act")), (ii) not retail investors and, if applicable and acting on a non-discretionary basis, who are acting on behalf of beneficial owners that are not retail investors, and (iii) otherwise persons to whom the Consent Solicitation can be lawfully made and that may lawfully participate in the Consent Solicitation (all such persons "Eligible Noteholders").

For the purposes of this announcement and the Consent Solicitation Memorandum, a "retail investor" means a person who is one (or more) of: (i) a retail client as defined in point (11) of Article 4(1) of Directive 2014/65/EU (as amended or superseded, "MiFID II"), (ii) a customer within the meaning of Directive 2016/97 (the Insurance Distribution Directive), where that customer would not qualify as a professional client as defined in point (10) of Article 4(1) of MiFID II, (iii) a retail client, as defined in point (8) of Article 2 of Regulation (EU) No 2017/565 as it forms part of domestic law by virtue of the European Union (Withdrawal) Act 2018, as amended (the "EUWA"), or (iv) a customer within the meaning of the provisions of the Financial Services and Markets Act 2000, as amended (the "FSMA") and any rules or regulations made under the FSMA which were relied on immediately before exit day to implement Directive (EU) 2016/97, where that customer would not qualify as a professional client, as defined in point (8) of Article 2(1) of Regulation (EU) No 600/2014 as it forms part of domestic law by virtue of the EUWA.

Timetable

Set out below is an indicative timetable showing one possible outcome for the timing of the Consent Solicitation:

Date/Time

(all times are  London time)

 

Action

3 June 2021

1.            

Notice of the Meeting to be delivered to the Clearing Systems.

Release of Notice through the regulatory news service of the London Stock Exchange.

 

Copies of the Consent Solicitation Memorandum and the Noteholder Information (as defined in the Notice) to be available from the Tabulation Agent (including on the website of the Tabulation Agent (http://www.lucid-is.com/hiscox)).

From this date, Noteholders may arrange for Notes in their accounts with Clearstream, Luxembourg and/or Euroclear to be blocked in such accounts and held to the order and under the control of the Registrar in order to give valid Consent Instructions or Ineligible Holder Instructions to the Tabulation Agent or to make other arrangements to attend or be represented (via teleconference) at the Meeting.

5.00 p.m. on

23 June 2021

2.            

Expiration Deadline.

 

Final deadline for receipt by the Tabulation Agent of valid Consent Instructions or Ineligible Holder Instructions, in accordance with the procedures of Clearstream, Luxembourg and/or Euroclear, to be represented at the Meeting.

This will also be the deadline for making any other arrangements to attend or be represented (via teleconference) at the Meeting.

 

3.            

Final time by which Noteholders must have given notice to the Tabulation Agent (via the relevant Clearing Systems) of any intended revocation of, or amendment to, Consent Instructions or Ineligible Holder Instructions previously given by them.

2.00 p.m. on

28 June 2021

4.            

Noteholders' Meeting held via teleconference.

 

If the Extraordinary Resolution is passed at the Meeting:

As soon as reasonably practicable after the Meeting

5.            

Announcement of the results of the Meeting and, if the Extraordinary Resolution is passed, satisfaction (or not) of the Eligibility Condition and (if so satisfied) confirmation of the Reference Rate Adjustment.

Delivery of notice of such results to Euroclear and Clearstream, Luxembourg for communication to their account holders and an announcement released on the regulatory news service of the London Stock Exchange.

As soon as reasonably practicable after the Meeting

6.            

Implementation Date.

If the Extraordinary Resolution is passed at the initial Meeting and the Eligibility Condition is satisfied, the Supplemental Trust Deed will be executed and delivered by the Issuer and the Trustee and the modifications to the Conditions of the Notes described in the Consent Solicitation Memorandum will be implemented with effect from the date (the "Implementation Date") on which the Supplemental Trust Deed is executed (currently expected to be 28 June 2021).

The above dates and times will depend, among other things, on timely receipt (and non-revocation) of instructions, the rights of the Issuer (where applicable) to extend, waive any condition (other than the Consent Conditions) of, amend and/or terminate, the Consent Solicitation (other than the terms of the Extraordinary Resolution) as described in the Consent Solicitation Memorandum and the passing of the Extraordinary Resolution at the initial Meeting. Accordingly, the actual timetable may differ significantly from the timetable above.

Noteholders are advised to check with any bank, securities broker or other intermediary through which they hold their Notes when such intermediary would need to receive instructions from a Noteholder in order for such Noteholder to participate in, or to validly revoke their instruction to participate in, the Consent Solicitation by the deadlines specified above. The deadlines set by any such intermediary and each Clearing System for the submission and revocation of Consent Instructions will be earlier than the relevant deadlines specified above.

If a quorum is not achieved at the Meeting or the quorum is achieved and the Extraordinary Resolution is passed but the Eligibility Condition is not satisfied, the Meeting shall be adjourned until a date not less than 14 days nor more than 42 days later. The adjourned Meeting of Noteholders will be held at a date as will be notified to the Noteholders in the notice of the adjourned Meeting in accordance with the terms of the Trust Deed, such notice to be given at least 10 days (exclusive of the day on which the notice is given and of the day on which the Meeting is to be resumed) prior to the proposed adjourned Meeting. Any such notice of an adjourned Meeting will specify the new anticipated Implementation Date.

No consent or participation fee will be payable in connection with the Consent Solicitation.

Further details on the Consent Solicitation can be obtained from:

SOLICITATION AGENT

NatWest Markets Plc

250 Bishopsgate

London EC2M 4AA

United Kingdom

Attention: Liability Management

Tel: +44 20 7678 5222

Email: NWMLiabilityManagement@natwestmarkets.com

TABULATION AGENT

Lucid Issuer Services Limited

Tankerton Works

12 Argyle Walk

London WC1H 8HA

United Kingdom

Attention: Jacek Kusion

Tel: +44 20 7704 0880

Email: hiscox@lucid-is.com

Website: www.lucid-is.com/hiscox

The Legal Entity Identifier (LEI) of the Issuer is 5493007JXOLJ0QCY2D70.

DISCLAIMER:  This announcement must be read in conjunction with the Consent Solicitation Memorandum. This announcement and the Consent Solicitation Memorandum contain important information which should be read carefully before any decision is made with respect to the Consent Solicitation. If any Noteholder is in any doubt as to the action it should take or is unsure of the impact of the implementation of the Extraordinary Resolution, it is recommended to seek its own financial and legal advice, including in respect of any tax consequences, immediately from its broker, bank manager, solicitor, accountant or other independent financial, tax or legal adviser. Any individual or company whose Notes are held on its behalf by a broker, dealer, bank, custodian, trust company or other nominee or intermediary must contact such entity if it wishes to participate in the Consent Solicitation or otherwise participate at the Meeting (including the adjourned Meeting, if applicable) at which the Extraordinary Resolution is to be considered. 

In accordance with normal practice, none of the Trustee, the Tabulation Agent, the Registrar and the Principal Paying Agent for the Notes has been involved in the formulation of the Consent Solicitation, the Noteholder Proposal outlined in the Consent Solicitation Memorandum or the Extraordinary Resolution. Each of the Trustee, the Tabulation Agent, the Solicitation Agent, the Registrar and the Principal Paying Agent express no opinion on, and make no representations as to the merits of, the Consent Solicitation, the Noteholder Proposal outlined in the Consent Solicitation Memorandum or the Extraordinary Resolution.

Nothing in this announcement or the Consent Solicitation Memorandum constitutes or contemplates an offer of, an offer to purchase or the solicitation of an offer to sell securities in the United States or any other jurisdiction. The Notes have not been, and will not be, registered under the Securities Act, or the securities laws of any state or other jurisdiction of the United States, and the Notes may not be offered, sold or delivered, directly or indirectly, within the United States or to, or for the account or benefit of, U.S. persons (as defined in Regulation S under the Securities Act) except pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the Securities Act and applicable state or local securities laws.

UK MiFIR professionals/ECPs-only / No EEA or UK PRIIPs KID - Manufacturer target market (UK MiFIR product governance) is eligible counterparties and professional clients only (all distribution channels). No EEA or UK PRIIPs key information document (KID) has been prepared.

The distribution of this announcement and the Consent Solicitation Memorandum in certain jurisdictions may be restricted by law, and persons into whose possession this announcement or the Consent Solicitation Memorandum comes are requested to inform themselves about, and to observe, any such restrictions.

 

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