On May 8, the firm unveiled an offer to bondholders to exchange up to £300m of bonds for standard debt security.
In a stockmarket alert today, Friends Provident announced that, due to high demand from bondholders, it has managed to swap £322m for £162m worth of new debt.
The move has allowed the firm to reduce debt so the outstanding balance is £160m.
It has also allowed Friends Provident to stager the repayment over three stages – 2015, 2019 and 2021 – rather than just two.
The exchange has not raised new capital although the mix of equity will increase boosting the quality of the firm’s existing capital.
