SCOR Offers Convertible Bonds

June 28, 2004

France’s SCOR Group announced that it would offer 180 million euros ($218 million) worth of 4.125 percent unsecured convertible bonds within the French market.

SCOR’s bulletin stressed that no offering of the securities would be made outside France, and that they have not been registered or approved for sale by any other regulatory body other than France’s Autorité des marchés financiers.

The convertible bonds are due 1 January 2010. SCOR said it “intends to benefit from market opportunities and use the proceeds of the Offering to improve the structure of its existing indebtedness by extending its maturity, in particular by contributing in priority to the refinancing of its outstanding 1 percent OCEANE.”

A.M. Best has assigned a “bbb-” rating to the bonds, noting that the company’s outlook is now “stable,” and that its financial strength rating is currently “B++” (Very Good).

The ratings reflect the “company’s very good prospective capitalisation, improving trends in underlying performance and ongoing support from core European clients,” Best said. “These factors are somewhat offset by the recent volatility in reserves and the impact that the company’s recent performance has had on its profile in certain markets.”

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