R&Q raises $107m via private subordinated notes issue

Randall & Quilter Investment Holdings will issue 13-year unsecured subordinated tier two notes worth $107.75 million via a private placement.

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 percent floor and 2 percent cap, plus a margin of 6.75 percent for the first ten years and 8.25 percent thereafter.

The Bermuda Monetary Authority has approved the securities for inclusion in tier two ancillary capital.

Together with the $100 million equity raised in May, R&Q has now accessed over $200 million of capital across diversified sources of funding in 2020.

R&Q will use the proceeds to support growth in its programme management and legacy insurance businesses.

William Spiegel, deputy executive chairman, said: “The notes represent an advantageous source of capital given the favourable treatment they receive within our regulatory solvency and adjusted financial leverage positions.”