Castelnau Group Regulatory News (CGL)

31 Mar 2015 14:13

31 March 2015

XL Group plc Announces Issuance of Subordinated Notes

XL Group plc (together with its subsidiaries, “XL”) and Catlin Group Limited (“Catlin”) announced on 9 January 2015 (the “Announcement”) that they have agreed to the terms of a recommended cash and share acquisition of the entire issued and to be issued share capital of Catlin by XL (the “Acquisition”).

The Acquisition is, as set out in the Announcement, anticipated to be funded in part through the issuance of subordinated notes. To that end, XL today announces that its wholly-owned subsidiary, XLIT Ltd., completed the sale of $500 million aggregate principal amount of its 4.450% subordinated notes due 2025 (the “2025 Subordinated Notes”) and $500 million aggregate principal amount of its 5.500% subordinated notes due 2045 (the “2045 Subordinated Notes” and, together with the 2025 Subordinated Notes, the “Subordinated Notes”) on 30 March 2015 at an issue price of 99.633% and 99.115% of the principal amount thereof, respectively. XL expects to receive net proceeds from the issuance of the Subordinated Notes of approximately $980.6 million, after deducting underwriting discounts and estimated offering expenses, which will be used to fund in part the Acquisition.

In connection with the offering of the Subordinated Notes, XL has filed the following documents with the U.S. Securities and Exchange Commission (the “SEC”):

on 19 March 2015, a preliminary prospectus supplement relating to the offering of the Subordinated Notes, which can be obtained on the following link:http://www.sec.gov/Archives/edgar/data/875159/000093041315001285/0000930413-15-001285-index.htm on 24 March 2015, a current report on Form 8-K in connection with the pricing of the Subordinated Notes, which can be obtained on the following link:http://www.sec.gov/Archives/edgar/data/875159/000087515915000023/0000875159-15-000023-index.htm on 25 March 2015, a pricing supplement in connection with the pricing of the Subordinated Notes, which can be obtained on the following link:http://www.sec.gov/Archives/edgar/data/875159/000093041315001380/0000930413-15-001380-index.htm on 26 March 2015, a prospectus supplement relating to the offering of the Subordinated Notes, which can be obtained at the following link:http://www.sec.gov/Archives/edgar/data/875159/000093041315001441/0000930413-15-001441-index.htm on 30 March 2015, a current report on Form 8-K in connection with the closing of the offering of the Subordinated Notes, which can be obtained on the following link:http://www.sec.gov/Archives/edgar/data/875159/000093041315001549/0000930413-15-001549-index.htm

This press release does not constitute an offer to sell or the solicitation of an offer to buy any of the Subordinated Notes or any other securities, and shall not constitute an offer, solicitation or sale of the Subordinated Notes or any other securities in any state or jurisdiction in which such offer, solicitation or sale is not permitted.

Cautionary Note Regarding Forward-Looking Statements

The Private Securities Litigation Reform Act of 1995 (“PSLRA”) provides a “safe harbor” for forward-looking statements. This press release contains forward-looking statements that reflect XL’s current views with respect to future events and financial performance. Such statements include forward-looking statements both with respect to XL in general, and to the insurance and reinsurance sectors in particular (both as to underwriting and investment matters). Statements that include the words “expect,” “intend,” “plan,” “believe,” “project,” “anticipate,” “may,” “could” or “would” and similar statements of a future or forward-looking nature identify forward-looking statements for purposes of the PSLRA or otherwise.

All forward-looking statements address matters that involve risks and uncertainties. Accordingly, there are or will be important factors that could cause actual results to differ materially from those indicated in such statements. XL believes that these factors include, but are not limited to, the following: (a) changes in the size of XL’s claims relating to natural or man-made catastrophe losses due to the preliminary nature of some reports and estimates of loss and damage to date; (b) trends in rates for property and casualty insurance and reinsurance; (c) the timely and full recoverability of reinsurance placed by XL or Catlin, if the Acquisition is completed, with third parties, or other amounts due to XL or Catlin; (d) changes in the projected amount of ceded reinsurance recoverables and the credit ratings and creditworthiness of reinsurers; (e) actual loss experience from insured or reinsured events and the timing of claims payments being faster or the receipt of reinsurance recoverables being slower than XL anticipated; and (f) the other factors set forth in Item 1A, “Risk Factors,” of XL Group plc’s Annual Report on Form 10-K for the year ended December 31, 2014 and XL’s other documents on file with the Securities and Exchange Commission.

Additionally, the Acquisition is subject to risks and uncertainties, including: (a) XL and Catlin may be unable to complete the Acquisition because, among other reasons, conditions to the completion of the Acquisition may not be satisfied or waived, including the failure to obtain required regulatory approvals, or the other party may be entitled to terminate the Acquisition; (b) receipt of regulatory approvals required by the Acquisition may be subject to conditions, limitations and restrictions that could negatively impact the business and operations of the combined company; (c) uncertainty as to the timing of completion of the Acquisition; (d) the ability to obtain approval of the Acquisition by Catlin shareholders; (e) uncertainty as to the actual premium (if any) that will be realized by Catlin shareholders in connection with the Acquisition; (f) inability to retain key personnel of XL or Catlin during the pendency of the Acquisition or after completion of the Acquisition; (g) failure to realize the potential synergies from the Acquisition, including as a result of the failure, difficulty or delay in integrating Catlin’s businesses into XL; and (h) the ability of Catlin’s board of directors to withdraw its recommendation of the Acquisition.

The foregoing review of important factors should not be construed as exhaustive and should be read in conjunction with the other cautionary statements that are included herein or elsewhere. XL undertakes no obligation to update publicly or revise any forward-looking statement, whether as a result of new information, future developments or otherwise, except as required by the federal securities laws.

CONTACT: XL Group plc

David RadulskiInvestor Relations(203) 964-3470David.Radulski@xlgroup.com

Carol Parker TrottMedia Relations(441) 294-7290carol.parker-trott@xlgroup.com

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