AM Best has assigned a rating of “bbb-” to the £150m subordinated bonds issued by Beazley Group. The rating outlook is stable.
Beazley owns Beazley Furlonge Limited, the managing agency of Lloyd's Syndicate 623 and Lloyd's Syndicate 2623.
The proceeds of this issue will be used to replace an existing short-term facility and to support opportunities to grow the group's business as they arise.
Financial and debt leverage ratios remain within AM Best tolerance levels. The bonds are callable on 17 October 2016 and bear an initial interest rate of 7.25%, payable annually in arrears. Following the call date, the interest rate resets at 328 basis points above LIBOR, payable quarterly in arrears. The bonds have a maturity date of 17 October 2026.
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