Randall & Quilter Investment Holdings (R&Q) has signed an agreement to issue 13-year unsecured subordinated Tier 2 notes for $107.75 million. The notes have received approval by the Bermuda Monetary Authority (BMA) for inclusion in Tier 2 ancillary capital. R&Q intends to use the proceeds of the issuance to support the ongoing growth in its programme management and legacy Insurance businesses as it continues to capitalise on the increasing opportunities that are arising across the markets in which it operates. The notes will be due in December 2033 and can be called after five years at par. The coupon has been set at a rate of three-month US dollar London Inter-Bank Offered Rate, subject to a 0.5 percent floor and 2 percent cap, plus a margin of 6.75 percent for the first ten years and 8.25 percent thereafter. The notes will be issued in a private placement. Commenting on the issuance, William Spiegel, deputy executive chairman, said: “We are delighted to announce this successful transaction, which will further support our ability to drive growth across our two businesses.” He continued: “The notes represent an advantageous source of capital given the favourable treatment they receive within our regulatory solvency and adjusted financial leverage positions. This placement, as well as our $100 million equity raise in May, means we will have accessed over $200 million of capital across diversified sources of funding during the course of this year.” “Our balance sheet strength positions us to continue to take advantage of the ‘hardening’ insurance environment and increasing demand we are experiencing for our legacy insurance and programme management solutions,” he concluded.
