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Hastings Group Holdings plc
Hastings announces intention to issue investment grade unsecured senior bonds
10 May 2018
Hastings Group Holdings plc ('the Group', or 'Hastings'), the technology driven insurance provider, today announces its intention to conduct a series of credit investor meetings in the UK commencing 11 May 2018. Subject to market conditions, the issue of circa £250m of investment grade senior bonds (the 'Bonds') is expected to follow. The 7 year fixed rate unsecured Bonds are expected to be rated BBB by Fitch Ratings Limited.
Should the Group proceed with the issuance, the Bonds will provide longer term committed financing for the Group and reduce exposure to interest rate movements. The proceeds will be used to partly repay the existing short term Revolving Credit Facility and will not impact the stated target to reduce the net debt leverage multiple to 1.0 times during 2019.
The Bonds will be issued by Hastings Group (Finance) plc, a wholly owned subsidiary, and will be guaranteed by Hastings and certain other Group subsidiaries.
For more information, please contact:
Chief Financial Officer
T: +44 (0)1424 738244 email@example.com
Director of Investor Relations
T: +44 (0)1424 738244 firstname.lastname@example.org
Founded in 1996 in Bexhill-on-Sea on the Sussex coast, the Hastings Group is one of the fastest growing general insurance providers to the UK market, with 2.7 million live customer policies and employing over 3,400 colleagues at sites in Bexhill, Leicester, Gibraltar and London.
Hastings provides straightforward products and services to UK car, bike, van and home insurance customers with around 90% of policies directly underwritten by its Gibraltar based insurer, Advantage Insurance Company Limited.
Hastings Direct is a trading name of Hastings Insurance Services Limited, the Group's UK broker, which also trades via 'Hastings Premier', 'Hastings Essential', 'Hastings Direct SmartMiles', 'People's Choice' and 'insurePink'.
The Group operates as an integrated insurance provider with two businesses. The Group's Retail business, Hastings Insurance Services Limited, is responsible for the end customer pricing, fraud management, product design, distribution and management of the underlying customer relationships. The Group's Underwriting business, Advantage Insurance Company Limited, engages in risk selection, underlying technical pricing, reserving and claims handling.
Retail is supported by, and benefits from, Underwriting's prudent approach to risk and reserving and also benefits from a panel of insurance partners who provide additional underwriting capacity. The Group's integrated model deliberately separates underlying product manufacturing from its distribution.
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The securities referred to herein have not been and will not be registered under the US Securities Act of 1933, as amended (the "Securities Act"), or with any securities regulatory authority of any state or other jurisdiction of the United States, and may not be offered or sold in the United States or to US persons (as such term is 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 US Securities Act. The issuer of the securities has not registered, and does not intend to register, any portion of the offering in the United States, and does not intend to conduct a public offering of the securities in the United States.
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