ADV.L Regulatory News (ADV)

29 Nov 2005 07:03

Advent Capital (Holdings) PLC29 November 2005 For publication in the United Kingdom only. Not for release , publication, or distribution in or into any other jurisdiction including the United States, Canada, Australia, South Africa, The Republic of Ireland or Japan. Advent Capital (Holdings) PLC ("Advent" or the "Company") New debt facility and capacity update Advent Capital (Holdings) PLC, the specialist Lloyd's insurer, today announcesthat it has agreed a new US$26 million (£15 million) unsecured senior debt issuewith a US based investment bank which specializes exclusively in the financialservices and insurance sectors and is recognized as a market leader in thisfield. This new funding is in addition to the £30m equity placing announced on 25November 2005 and has been arranged at terms broadly comparable to the existingdebt issued on 3 June 2005. The additional funding will significantly strengthenAdvent's financial position, generate surplus funds and, after Advent hasprovided for all of its net open year losses, creates further opportunities totake advantage of the strong market conditions expected for 2006. Advent is nowin a position to take up £40 million of additional capacity on Syndicate 780thereby increasing its overall participation for 2006 from £82 million in 2005to £122 million in 2006, an increase of 49%. Syndicate 780 will operate with anunchanged overall capacity of £153 million for 2006, of which Advent willprovide some 80%. Details of new debt structure: • US$26 million (£15 million)• Interest only loan at US$ LIBOR +3.9%, subject to an upward adjustment of 0.6% depending upon the eventual rating of the debt• Term: 20 years• No financial covenants• Conditional upon the closing of the equity issue• Ranks in priority to the subordinated debt issued in June 2005 Details of equity raising (as announced on 25 November 2005): • Total capital raising of £30 million• £16.5 million will be subscribed for by existing shareholders• £13.5 million underwritten by Numis Securities Limited ("Numis") of which £3.1 million was subject to FSA controller approval, which has now been obtained.• Of the £13.5 million underwritten by Numis, commitments have been received for £11.1m from existing shareholders. Re-clarification Advent has not exhausted its reinsurance cover in respect of the marine andenergy lines of business for projected losses from Hurricane Wilma, as wasindicated in the announcement made on 25 November 2005. At this stage nomaterial claims have been made on these lines of business for Hurricane Wilmaand therefore substantial reinsurance cover remains in place for this event. Brian Caudle, Chairman commented: "This new funding ensures that we are in a very strong position for the comingyear. I am pleased that we have the capital to back our business plan andmanagement team to the fullest extent, significantly supported by Advent alongwith the third party capital which continues to back the Syndicate. " 29 November 2005 For further information please contact:Advent Capital HoldingsKeith Thompson Tel: 020 7743 8200Chief Operating Officer Pelham Public RelationsJames Henderson Tel: 020 7743 6670Gavin Davis Advent Capital (Holdings) PLC, which listed on AIM in June 2005, is a leadingLloyd's insurer that manages and participates on Syndicate 780. The Syndicate ispredominantly a short tail property reinsurance and insurance syndicatespecialising in catastrophe business. Details on the Company: • Advent listed on AIM in June 2005 raising a total of £65 million. • On the 25th November 2005 Advent announced an equity raising of £30 million pre expenses. • Advent manages and participates on Syndicate 780 through Advent Underwriting Limited (a Lloyd's managing agency) and Advent Capital Limited (a corporate member of Lloyd's). • Advent Underwriting Limited, which was formed in 1975, has operated in the Lloyd's market for thirty years. • Syndicate 780 has outperformed the Lloyd's market in 27 of the last 29 closed years of account returning an average profit of 18.5% compared with the Lloyd's average of 1.3%. However, Syndicate 780 is expected to underperform the Lloyd's market for the 2004 and 2005 years of account. • Advent's management is led by Brian Caudle (Executive Chairman and Director of Underwriting) and Keith Thompson (Chief Operating Officer). This information is provided by RNS The company news service from the London Stock Exchange