Rathbones Group Plc has issued £60 million in tier 2 notes due in December 2036, with proceeds earmarked for general corporate purposes and to refinance £40 million of existing tier 2 notes issued in 2021.
The fixed-rate notes carry a coupon of 8.125% per annum through the interest payment date in December 2031. If the issuer does not exercise its call option, the rate will reset at five-year Gilts plus 336.9 basis points.
A three-month par call option is exercisable at Rathbones' discretion, subject to prudential requirements, from September 9, 2031, to December 9, 2031.
The new notes will be admitted to trading on the International Securities Market of the London Stock Exchange. Group Chief Financial Officer Iain Hooley said the issuance forms part of the company's approach to capital management.
The refinancing reduces Rathbones' near-term tier 2 maturity profile by replacing the £40 million tranche issued in 2021 with a longer-dated instrument maturing in 2036.
