R&Q raises $107m via private placement to support programme & legacy growth

Insurance services and investment company Randall & Quilter Investment Holdings (R&Q) has signed an agreement to issue 13-year unsecured subordinated tier two notes worth $107.75 million via a private placement.

R&Q plans to use the proceeds to support growth in its programme management and legacy insurance businesses, as well as capitalise on the opportunities that are arising across the markets in which it operates.

The Bermuda Monetary Authority has approved the securities for inclusion in tier two ancillary capital.

The notes will be due in December 2033 and can be called after five years at par.

The coupon has been set at a rate of three-month US dollar Libor, subject to a 0.5 percent floor and 2 percent cap, plus a margin of 6.75 percent for the first ten years and 8.25 percent thereafter.

Together with the $100 million equity raised in May, R&Q has now accessed over $200 million of capital across diversified sources of funding in 2020.

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.

"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."