R&Q to issue SG$143.7 million in subordinated notes

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Randall & Quilter Investment Holdings, a non-life global specialty insurance company focusing on program management and legacy insurance, has announced that it has signed an agreement to issue 13-year unsecured subordinated Tier 2 notes of $107.75 million (approx. SG$143.7 million). The notes have been approved by the Bermuda Monetary Authority for inclusion in Tier 2 ancillary capital.

R&Q will use the proceeds of the issuance to support the growth of its program management and legacy insurance businesses. 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 LIBOR, subject to a 0.5% floor and 2% cap, plus a margin of 6.75% for the first 10 years and 8.25% thereafter. The notes will be issued in a private placement, R&Q said.

“We are delighted to announce this successful transaction, which will further support our ability to drive growth across our two businesses,” said William Spiegel, deputy executive chairman of R&Q. “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 $100 million (approx. SG$ 133.7 million) equity raise in May, means we will have accessed over $200 million (approx. SG$267.4 million) of capital across diversified sources of funding during the course of this year. Our balance sheet strength positions us to take advantage of the hardening insurance environment and increasing demand we are experiencing for our legacy and program management solutions.”

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