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Friends restructures £322m of debt in bond swap

Friends Provident has managed to restructure £322m worth of debt to strengthen the quality of its capital.

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.

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