Inusrance group issues £266.5m of fixed-rate bonds and £150m of floating-rate notes

Hastings has completed its £416.5m debt refinancing programme.

The company has issued £266.5m of bonds that pay investors a fixed 8% rate of interest and £150m of bonds that pay a variable interest rate of 6% above the London Interbank Offered Rate (Libor).

The fixed-rate bonds mature in October 2020 and the variable-rate bonds in October 2019.

Last week rating agency Moody’s assigned a B2 rating to the bonds, which have been issued as part of Goldman Sachs’s investment in the company.

Hastings underwent a management buy-out in 2009 and has grown rapidly since. For the year to 30 June 2013, the broking and insurance firm placed £444.1m of gross premium and reported adjusted earnings before interest, tax, depreciation and amortisation of £83.3m.

Hastings also reported a 2012 profit of £40m and return on capital of 37%.

Hastings chief executive Gary Hoffman said: “Hastings is a fast growing, successful general insurance business. We have a clear strategic plan to continue providing refreshingly straightforward insurance. We are proud of what we do, but know we can get better – we intend to be a force for good in the industry.

“The strong appetite for the bond is a testament to the market’s confidence in the financial performance and stability of our business.

“With over £700m of institutional and shareholder capital behind us we can look forward to the future with huge confidence.”

 

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