PartnerRe in euro fixed-rate note ‘first’
PartnerRe has become the first Bermuda insurer and reinsurer to make an issuance in the euro-denominated bond market.
And investors were clamouring to get their hands on the notes, easily outmatching their availability.
PartnerRe has priced, through its indirectly wholly-owned subsidiary PartnerRe Ireland Finance DAC, 750 million euros of ten-year fixed-rate 1.25 per cent notes.
The notes are fully guaranteed by PartnerRe and will be listed on the Irish Stock Exchange.
The notes collected orders in excess of three billion euros, including from leading institutional investors in Asia-Pacific.
PartnerRe intends to use the proceeds to redeem Series D 6.5 per cent and Series E 7.25 per cent preferred shares, to refinance a $250 million bond at 6.875 per cent due in 2018, and for general corporate purposes.
PartnerRe is expected to achieve yearly pre-tax savings on interest payment and dividends of approximately $16 million starting from 2017 financial year as a result of the strategy.
Emmanuel Clarke, CEO of PartnerRe, said: “The transaction represents an important recognition of our leadership position in the global reinsurance market and enhances the quality of the capital on our balance sheet.
“The increased financial flexibility which we have gained by complementing our capital market presence in North America with access to the euro-denominated market is a competitive advantage which will allow us to better serve our clients and which we expect to continue to leverage in the future.”
Fitch tonight gave the notes a BBB+ rating and also affirmed PartnerRe's A+ financial strength rating.