PFG.L Regulatory News (PFG)

Provident Financial plc

Tier 2 Pricing and Senior Bond Tender

Provident Financial plc ('PFG' or 'the Group'), the leading provider of credit products to consumers who are underserved by mainstream banks, publishes an update to the market today following the successful pricing of the Group's first Tier 2 subordinated bond since 2005 and the partial tender of its 2023 Senior Bonds.

Tier 2 Bond pricing

PFG announces today that it has successfully priced its first subordinated debt capital to the external markets since 2005. The pricing is for a £200m Tier 2 bond in pound sterling with a 10.25 year maturity, callable after 5.25 years, and a coupon of 8.875% reflecting the strong interest received from the market and the Group's improving credit narrative. The bond is being priced with an expected rating of B+ (Fitch). The pricing of the bonds represents an important additional step for the Group as it seeks to diversify its sources of capital and funding, and to finance future growth opportunities.

Partial tender process

A partial tender process for the Group's 2023 Senior Bonds, with an 8.25% coupon, was launched by PFG. The Group successfully repurchased £71.5m of its £175m outstanding 2023 Senior Bonds, which do not count towards the Group's regulatory capital. This is the second time that PFG has successfully launched a partial tender of these bonds, the last time being August 2020 for £75.0m.

Neeraj Kapur, Chief Finance Officer, commented:

"I am pleased to announce the pricing of PFG's first Tier 2 capital issuance since 2005, alongside a buyback of some of our 2023 Senior Bonds, as we continue to target efficiencies across our capital and funding structure. Following strong demand from investors, we have priced £200m of Tier 2 subordinated debt capital, in a typical form under UK regulation, with a 10.25 year maturity, callable at 5.25 years, and a coupon of 8.875%. The strong support we received from participating investors was excellent and a real endorsement of our strategic objectives moving forwards. In combination with other debt refinancing activities that have been executed since our half year results, this places the Group in a very strong capital and liquidity position."

Distribution Restrictions

Please note that the information contained in this announcement and the Final Terms may be addressed to and/or targeted at persons who are residents of particular countries (specified in the Base Prospectus dated 23 September 2021)) only and is not intended for use and should not be relied upon by any person outside these countries and/or to whom the offer contained in the Final Terms is not addressed. Prior to relying on the information contained in this announcement, the Final Terms and the Base Prospectus you must ascertain from the Final Terms and the Base Prospectus whether or not you are part of the intended addressees of the information contained therein.

This announcement does not contain or constitute an offer of, or the solicitation of an offer to buy, securities to any person in the United States or in any jurisdiction to whom or in which such offer or solicitation is unlawful.

The notes referred to in the Final Terms and the Base Prospectus (the "securities") have not been, and will not be, registered under the US Securities Act of 1933, as amended (the "Securities Act"), or under any relevant securities laws of any state of the US and are subject to US tax law requirements. Subject to certain exceptions, the securities may not be offered or sold directly or indirectly within the US or to, or for the account or benefit of, US persons or to persons within the US, as such terms are defined in Regulation S under the Securities Act. Any forwarding, distribution or reproduction of the Final Terms or the Base Prospectus in whole or in part is prohibited. Failure to comply with this notice may result in a violation of the Securities Act or the applicable laws of other jurisdictions. There will be no public offering of the securities in the United States.

The Base Prospectus is available at https://www.rns-pdf.londonstockexchange.com/rns/7891M_1-2021-9-23.pdf, the Supplementary Base Prospectus is available at https://www.rns-pdf.londonstockexchange.com/rns/9638N_1-2021-10-4.pdf and the Final Terms (when published) will be available at: https://www.londonstockexchange.com/news?tab=news-explorer.

A rating is not a recommendation to buy, sell or hold securities and may be subject to revision, suspension or withdrawal at any time by the assigning rating organisation.