Issuance of Subordinated Notes

Randall & Quilter Investment Holdings Ltd.

Issuance of Subordinated Notes

4 December 2020

Randall & Quilter Investment Holdings Ltd. (AIM-RQIH) ("R&Q"), the non-life global specialty insurance company focusing on Program Management and Legacy Insurance, is pleased to announce that it has signed an agreement to issue 13-year unsecured subordinated Tier 2 notes (the "Notes") in an amount of $107.75 million.  The Notes have received approval by the Bermuda Monetary Authority for inclusion in Tier 2 Ancillary Capital.

R&Q intends to use the proceeds of the issuance to support the ongoing growth in its Program Management and Legacy Insurance businesses as it continues to capitalise on the increasing opportunities that are arising across the markets in which it operates.

The Notes will be due in December 2033 and can be called after 5 years at par. The coupon has been set at a rate of 3-month US dollar LIBOR, subject to a 0.5% floor and 2% cap, plus a margin of 6.75% for the first ten years and 8.25% thereafter. The Notes will be issued in a private placement.

Commenting on the issuance, William Spiegel, Deputy Executive Chairman, said:

"We are delighted to announce this successful transaction, which will further support our ability to drive growth across our two businesses. 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 equity raise in May, means we will have accessed over $200 million of capital across diversified sources of funding during the course of this year. Our balance sheet strength positions us to continue to take advantage of the "hardening" insurance environment and increasing demand we are experiencing for our Legacy Insurance and Program Management solutions."

ENDS

About R&Q

R&Q is a non-life global specialty insurance company operating two core, highly complementary businesses: Program Management and Legacy Insurance. Both businesses are leaders in markets with high barriers to entry and significant secular growth opportunities.  

Legacy Insurance generates profits and capital extractions from expert management of run-off non-life insurance portfolios. Program Management generates commission income from its licensed (and rated) carriers in the US, EU and the UK, writing niche and profitable program business, largely on behalf of highly rated reinsurers.

Legal Entity Identifier (LEI): 2138006K1U38QCGLFC94

Website: http://www.rqih.com/