Friends Provident is attempting to restructure its bond debts to improve its capital stability, it has revealed today.
It has asked holders of its Step-Up Tier one Insurance Capital Securities (STICS) issued in 2003 and 2005 to exchange them for a new bond paying a fixed percentage for twelve years. The deal could allow Friends to restructure as much as £300m worth of debt. Friends says it has opted to offer the deal to creditors to improve its capital position in advance of its demerger of F&C Asset Management. The 2003 STICS, paying 6.875% interest, and 2005 STICS, paying 6.292%, can be exchanged for up to £300m of subordinated debt guarantee notes, paying 12% and expiring in 2012. Friends says th...
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