Phoenix Group Holdings Trading Update and Credit Investor Roadshow (7620T)

TIDMPHNX TIDM37TL

RNS Number : 7620T

Phoenix Group Holdings

10 January 2017

THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION

Trading update and announcement of roadshow with credit investors

Phoenix Group Holdings ("Phoenix" and, together with its subsidiaries, the "Group") announces that it has generated a total of GBP486 million of cash from the Group's operating companies in 2016. Of this total cash generation, GBP117 million has been generated from the integration of the AXA Wealth pensions and protection businesses ("AXA Businesses") that were acquired on 1 November 2016.

The Group has therefore achieved its 2016 target for cash generation of between GBP350 million to GBP450 million, which was announced at the time of its 2015 year end results on 23 March 2016. Furthermore, Phoenix reiterates its expectation that it will generate a total of at least GBP250 million of cash from the integration of the AXA Businesses within 6 months of completion of the acquisition.

During December 2016, the Group repaid the entirety of the GBP182 million of bank debt used to finance the acquisition of the AXA Businesses. In addition, the GBP250 million short-term bank facility relating to the Abbey Life acquisition has been converted into a tranche of the Group's existing bank Revolving Credit Facility ("RCF"), increasing the size of the RCF from GBP650 million to GBP900 million. During December 2016, GBP50 million of the RCF was repaid, leaving GBP850 million of the RCF outstanding as at 31 December 2016.

On 21 December 2016, PGH Capital PLC established a GBP3,000,000,000 Euro Medium Term Note Programme guaranteed on a senior or subordinated basis by Phoenix. PGH Capital PLC has mandated Citigroup Global Markets Limited, J.P. Morgan Securities plc, Lloyds Bank plc, Merrill Lynch International and The Royal Bank of Scotland plc (trading as NatWest Markets) to arrange a series of credit investor meetings in London commencing 12 January 2017. A benchmark Sterling denominated 5.5 year Tier 3 transaction to be guaranteed on a subordinated basis will follow, subject to market conditions.

The net proceeds from the proposed debt issuance are expected to be used to further reduce the outstanding amount of the Group's bank debt.

Enquiries

Equity Investors/Analysts:

Sam Perowne, Head of Investor Relations, Phoenix Group

[phone]

Debt Investors:

Rashmin Shah, Group Treasurer, Phoenix Group

[phone]

Media:

Neil Bennett, Tom Eckersley, Maitland

[phone]

The person responsible for arranging for the release of this announcement on behalf of Phoenix is Gerald Watson, Group Company Secretary.

Disclaimer

This announcement is for information purposes only and does not constitute an offer to sell or the solicitation of an offer to buy any securities.

This announcement does not constitute and shall not, in any circumstances, constitute a public offering nor an invitation to the public in connection with any offer within the meaning of the Directive 2010/73/EU of the Parliament and Council of November 4, 2003 as implemented by the Member States of the European Economic Area (the "Prospectus Directive"). Any offer and sale of the notes will be made pursuant to an exemption under the Prospectus Directive, as implemented in Member States of the European Economic Area, from the requirement to produce a prospectus for offers of securities.

Stabilisation: FCA/ICMA

This information is provided by RNS

The company news service from the London Stock Exchange

END

TSTBMMFTMBIBMFR

(END) Dow Jones Newswires

January 10, 2017 02:00 ET (07:00 GMT)