Phoenix Group completes first phase of deleveraging programme

Phoenix Group announced on Thursday that it has successfully completed the initial phase of its deleveraging programme, including a significant debt redemption and refinancing exercise.

The FTSE 100 company said it was aiming to repay at least £500m of debt and achieve a Solvency II leverage ratio of around 30% by the end of 2026.

On 3 May, Phoenix Group announced its intention to fully redeem its £250m Tier 2 notes due 2029, which was executed on their first call date of 13 June, with the debt now completely repaid.

Additionally, the firm said it had opted to refinance $500m of its outstanding restricted Tier 1 (RT1) notes, which were callable in early 2025, through a tender exercise.

In conjunction with that, Phoenix successfully issued $500m of new RT1 notes with a coupon rate of 8.5%.

The board said the phase had resulted in a reduction of £250m in outstanding debt while maintaining the group's annual debt interest costs at roughly the same level.

Reporting by Josh White for Sharecast.com.