Direct Line Insurance Group Plc said roughly £366.7 million of notes were validly tendered in its offer for a series of fixed/floating-rate guaranteed subordinated notes due 2042 but that it will only repurchase £250 million of the notes.
The purchase spread is unchanged at 125 basis points over the benchmark security rate, which was set at 0.659%. The purchase is 130.733%, based on the benchmark security rate and purchase yield of 1.909%. The scaling factor was set at 69.2691%.
Settlement, including the payment of purchase price and accrued interest, is expected to take place Dec. 8, subject to the completion of a new issue of notes.
Deutsche Bank AG, London branch, HSBC Bank Plc and Royal Bank of Scotland Plc acted as dealer managers for the tender offer, while Lucid Issuer Services Ltd. served as tender agent.
