Scor SE issued perpetual deeply subordinated Restricted Tier 1 Regulation S notes in the amount of $125 million.
The notes carry a coupon of 5.25% until the first call date of March 13, 2029, after which the coupon rate will reset to the five-year U.S. Treasury yield plus 2.37%. Proceeds from the notes, priced at 99.125%, were swapped into euros, providing an effective yield cost to the company of 3.115%.
Scor intends to use proceeds from the notes for general corporate purposes and to redeem the CHF125 million undated subordinated note lines, issued Oct. 20, 2014, and callable in October 2020.
The notes will be assimilated 40 days from issuance with the $625 million Restricted Tier 1 notes issued March 13, 2018, and will be subject to the same terms and conditions as the existing notes. Settlement is expected to occur Dec. 17.
The proceeds are expected to be eligible for inclusion in the company's Tier 1 regulatory capital, in line with applicable rules and regulatory standards, and as equity credit in the rating agency capital models.