JRP Group PLC COMPLETION OF £250m TIER 2 CAPITAL TRANSACTION (4804N)

TIDMJRP

RNS Number : 4804N

JRP Group PLC

26 October 2016

NEWS RELEASE www.jrpgroup.com

26 October 2016

JRP GROUP PLC

SUCCESSFUL COMPLETION OF GBP250 MILLION TIER 2 CAPITAL TRANSACTION

JRP Group plc (JRP) today announces that, following the completion of a successful roadshow, it has raised GBP250 million of sterling denominated unrated 10 year Tier 2 capital. The bonds will be listed on the Euro MTF market of the Luxembourg Stock Exchange.

The capital that JRP has raised increases flexibility and provides further room for growth at attractive rates of return. It also enables us to repay the senior bank debt, which stood at GBP98m at the end of June 2016. This debt did not benefit the regulatory capital position of the Group. By increasing its leverage, the Group has further diversified and strengthened its regulatory capital structure. On a pro forma basis, the Group's Solvency II capital ratio at 30 June 2016 would have increased to approximately 151%.

The combination of this increased capital flexibility, the increase in targeted synergies by GBP5m to GBP45m per annum, as well as the material improvement in margin as the combined Group sees the benefits of growing markets and a strong competitive position, will ensure that JRP can continue its growth trajectory whilst delivering attractive internal rates of return.

Key terms and conditions:

   --      GBP250 million 10 year bullet structure 
   --      Tier 2 qualifying regulatory capital instrument under Solvency II 

-- Bond issued by JRP, the Group's listed holding company, with a subordinated guarantee provided by Just Retirement Limited, the Group's main operating subsidiary

   --      Annual interest rate of 9% payable semi-annually in arrears 

Rodney Cook, Group Chief Executive, said:

"The support we have received from institutional investors demonstrates confidence in JRP's business model and its prospects. Along with a focus on efficient and conservative risk management, our business has been built on the simple premise of excellent customer service supported by unrivalled medical underwriting IP. This is a clear differentiator for us with our customers, and now with debt investors. The 9% cost of subordinated debt is significantly below the attractive internal rates of return that new business should generate once our synergies are realized, and the proceeds bring our capital ratios more in line with our peer group."

Enquiries

 
 Investors / Analysts               Media 
 
  James Pearce, Group Director       Stephen Lowe, Group Communications 
  of Corporate Finance and           Director 
  Investor Relations 
 
  Telephone: [phone]            Telephone: [phone] 
  085 099                            827 301 
  [e-mail]    [e-mail] 
 
                                     Temple Bar Advisory 
                                     Alex Child-Villiers 
                                     William Barker 
                                     Telephone: [phone] 
                                     1080 
 

A copy of this announcement will be available on the Group's website www.jrpgroup.com

JRP GROUP PLC

GROUP COMMUNICATIONS

Vale House, Roebuck Close

Bancroft Road, Reigate

Surrey RH2 7RU

Not for release, publication or distribution, directly or indirectly, in or into the United States or any other jurisdiction where to do so would be unlawful.

This communication is not an offer of securities for sale in the United States or any other jurisdiction where to do so would be unlawful. JRP has not registered, and does not intend to register, any portion of the securities referred to in this communication in any of these jurisdictions and does not intend to conduct a public offering of securities in any of these jurisdictions. In particular, the securities have not been and will not be registered under the Securities Act of 1933, as amended (the "Securities Act"), and may not be offered or sold within the United States or to, or for the account or benefit of, U.S. persons (as defined in Regulation S under the Securities Act) except pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the Securities Act and in compliance with any applicable state securities laws. Outside the United States, the offer is being made to non-U.S. persons in accordance with Regulation S under the Securities Act.

This information is provided by RNS

The company news service from the London Stock Exchange

END

MSCEAXEKAEEKFEF

(END) Dow Jones Newswires

October 26, 2016 08:23 ET (12:23 GMT)