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Liverpool Victoria Financial Services Limited announces the Reset Rate on its £350,000,000 6.50 per cent

25/05/2023
FINANCIAL AND CORPORATE

Capitalised terms used in this announcement but not defined have the meanings given to them in the terms and conditions applicable to the Notes.

Key points

  • In accordance with the terms and conditions of the Notes, the Interest Rate payable on the Notes is subject to a resetting process from time to time. The first reset becoming effective from and including 22 May 2023.
  • Following the procedure set out in the terms and conditions of the Notes, the Interest Rate has been reset based on the sum of the 5 Year Gilt Rate (as determined by the Principal Paying
  • Agent on the date falling one (1) Business Day prior to the Reset Date), plus the Initial Margin (463bps) and plus the Step-Up Margin (100bps).
  • The Interest Rate (being the Reset Rate) which shall be payable from and including 22 May 2023 is 9.44%.
  • This Reset Rate will remain the effective rate payable on the Notes until the next reset of the Interest Rate is due to take effect, which will be on the fifth anniversary of 22 May 2023.

Interest Rate Reset

25 May 2023.  The Company today announces the result of the interest resetting process applicable to its 350,000,000 6.50 per cent. Fixed Rate Reset Subordinated Notes callable 2023 due 2043 (the “Notes”).

Under the terms and conditions of the Notes, the Interest Rate is due to be reset with effect from 22 May 2023 and thereafter on each fifth anniversary of that date.

The procedure for resetting the Interest Rate is set out in the terms and conditions of the Notes and involves the Principal Paying Agent determining the rate by reference to the generic bid yield on a 5 year generic Gilt by reference to the Bloomberg screen page GUKG5.

The Principal Paying Agent has determined the generic bid Yield applicable on the 5 year generic Gilt to be 3.81%. The terms and conditions of the Notes requires the Interest Rate on the Notes to be set at the rate of 5.63% per annum (being the Initial Margin (463bps) and plus the Step-Up Margin (100bps)) plus the 5 Year Gilt Rate.  Accordingly, it has determined the new rate of interest as being 9.44% per annum. This rate will apply to the Notes from and including 22 May 2023. 

General

The Notes were originally issued by Liverpool Victoria Friendly Society Limited. On 2 January 2020, Liverpool Victoria Friendly Society Limited converted from a friendly society to a company limited by guarantee under the name Liverpool Victoria Financial Services Limited. Following this conversion, the Notes remain obligations of Liverpool Victoria Financial Services Limited.

Enquiries:

Michael Jones, Company Secretary t: 07795 170669

DISCLAIMER 

THIS ANNOUNCEMENT DOES NOT CONSTITUTE AN OFFER TO BUY OR THE SOLICITATION OF AN OFFER TO SELL THE NOTES DESCRIBED HEREIN.

THIS ANNOUNCEMENT IS ONLY DIRECTED AT PERSONS WITHIN THE UNITED KINGDOM WHO ARE (I) EXISTING MEMBERS OR CREDITORS OF THE COMPANY OR OTHER PERSONS WITHIN ARTICLE 43 OF THE FINANCIAL SERVICES AND MARKETS ACT 2000 (FINANCIAL PROMOTION) ORDER 2005 (THE "ORDER") OR (II) INVESTMENT PROFESSIONALS FALLING WITHIN ARTICLE 19(5) OF THE FINANCIAL SERVICES AND MARKETS ACT 2000 (FINANCIAL PROMOTION) ORDER 2005 (THE "ORDER") OR (III) OTHER PERSONS TO WHOM IT MAY LAWFULLY BE COMMUNICATED UNDER THE ORDER (ALL SUCH PERSONS IN (I), (II) AND (III) ABOVE TOGETHER BEING REFERRED TO AS "RELEVANT PERSONS") AND MUST NOT BE ACTED ON OR RELIED UPON BY PERSONS OTHER THAN RELEVANT PERSONS. FOR ANY PERSON VIEWING THIS ANNOUNCEMENT WHO IS NOT A RELEVANT PERSON, THIS ANNOUNCEMENT IS PUBLISHED FOR INFORMATION PURPOSES ONLY.