Legal & General Group on Wednesday launched a tender offer to repurchase 600 million British pounds of subordinated notes as it prepares for upcoming changes to capital rules.
The company is offering to buy back the debt, which matures in 2064, for cash at 100% of its nominal value.
The move comes as the notes are set to lose their classification as Tier 2 capital under Solvency II transitional arrangements on Jan. 1, 2026.
Legal & General said the purpose of the offer and a planned new debt issuance is to proactively manage its expected redemption profile.
The tender offer is conditional on the successful sale of new euro-denominated Tier 2 notes, according to a company filing.
Investors who tender their existing notes may receive preferential allocation for the new debt issuance.
The company said it intends to cancel any notes it purchases through the offer, which expires on Sept. 5.
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