SCOR SE today announces that it has successfully completed the placement with institutional investors of perpetual fixed rate resettable restricted Tier 1 notes being eligible as Restricted Tier 1 regulatory capital under Solvency II, in a principal amount of EUR 500 million (the "New Notes").
The transaction met with strong investor demand with the issue having been subscribed 5.6 times.
The initial fixed rate is 6% per annum payable semi-annually in arrear until 20 December 2034, then the interest rate will be reset and every 5 years thereafter at the prevailing EUR 5-year mid-swap rate plus a margin of 385.7 basis points.
In accordance with Solvency II requirements, the New Notes include a loss-absorption mechanism in the form of a write-down1 of the principal amount of the New Notes in the event that one of the solvency-related triggers is breached2. Interest payments are at the sole discretion of SCOR SE and may be mandatorily prohibited.
The New Notes are rated BBB+ by S&P Global Ratings Europe Limited.
The net proceeds of the issue of the New Notes will be used for general corporate purposes of the Group including through the repurchase of all or part of the outstanding EUR 250,000,000 Fixed to Reset Rate Undated Subordinated Notes with a first call date on 1st October 2025 (ISIN FR0012199123) (being eligible as Tier 1 Own Funds regulatory capital and benefitting from transitional measures for tiering of subordinated liabilities until the end of December 2025) pursuant to the tender offer announced in the press release published on 12 December 2024.
The settlement date for the New Notes is expected to occur on 20 December 2024. Application will be made to the Luxembourg Stock Exchange for the New Notes to be admitted to trading on the Luxembourg Stock Exchange’s regulated market.
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