Banking and Capital MarketsOctober 12, 2018

Dillon Eustace advises FBD on issuance of new €50m Tier 2 subordinated notes and buy-back of existing €70m convertible notes

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Dillon Eustace is delighted to have advised listed Irish insurer FBD on its recent €50m issuance of subordinated notes and its purchase and cancellation of €70m of convertible notes due 2025. Having represented FBD on the original issuance of convertible notes to affiliates of Fairfax Financial Holdings Limited in 2015, we were very pleased to once again lead this transaction on behalf of FBD.  

As was the case with the convertible notes (which were issued prior to full transposition of the Solvency II Directive into Irish law), the new notes are structured to qualify as Tier 2 Capital under Solvency II.
The transaction, which was described by FBD’s CEO, Fiona Muldoon, as a “great result” for FBD shareholders, avoids dilution of FBD’s existing shareholders, while also optimising and simplifying FBD's capital structure and reducing its on-going interest costs.   
The multi-disciplinary Dillon Eustace team was led by Conor Houlihan (Head of Banking & Capital Markets), who was assisted by Elaine Cummins (Solicitor, Banking & Capital Markets) and other members of the Banking & Capital Markets team. The transaction also involved input from members of our Corporate Department (Lorcan Tiernan (Partner, Head of Department) and Catherine Hicks (Senior Associate)), our Insurance/Regulatory practice (Andrew Bates (Partner, Head of Department)) and our Listing Department (Fionnán Gannon and Tara O’Callaghan).
Conor Houlihan, Partner and Head of Banking and Capital Markets, commented “The transaction is yet another example of our market-leading debt capital markets and financial services practices combining to efficiently deliver a very successful outcome on a complex matter for a long-standing corporate client.”