SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 6-K
REPORT OF FOREIGN PRIVATE ISSUER
Pursuant to Rule 13a-16 or 15d-16 of
the Securities Exchange Act of 1934
For the month of July, 2005
PRUDENTIAL PUBLIC LIMITED COMPANY
(Translation of registrant's name into English)
LAURENCE POUNTNEY HILL,
LONDON, EC4R 0HH, ENGLAND
(Address of principal executive offices)
Indicate by check mark whether the registrant files or will file annual reports
under cover Form 20-F or Form 40-F.
Form 20-F X Form 40-F
Indicate by check mark whether the registrant by furnishing the information
contained in this Form is also thereby furnishing the information to the
Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.
Yes No X
If "Yes" is marked, indicate below the file number assigned to the registrant
in connection with Rule 12g3-2(b): 82-
Enclosures: subordinated securities
FOR IMMEDIATE RELEASE
Friday 15 July 2005
Prudential plc - Issue of US$300m subordinated securities
On 15 July 2005, Prudential plc issued US$300 million perpetual subordinated
securities exchangeable into preference shares. They bear interest at 6.5% p.a.,
payable quarterly in arrears, and rank equal to preference shares.
The securities can be redeemed at Prudential plc's option on any interest
payment date from 23 September 2010. Payments under the securities would be
mandatorily or optionally deferred if Prudential plc fails to meet certain
conditions relating to solvency which are set out in the terms and conditions of
the securities.
Interest may be paid through an alternative coupon settlement mechanism at any
time. Deferred interest is only payable at redemption or exchange, through an
alternative coupon settlement mechanism, or upon a winding-up. Prudential plc
has the option to exchange the securities into fixed-rate 6.5% preference shares
on any interest payment date from 23 March 2011. Dividend payments on the
preference shares are fully discretionary.
The securities were sold in the US market and application to list them on the
New York Stock Exchange has been made. They are rated A by Standard & Poor's,
Baa1 by Moody's and A + by Fitch. The proceeds will be used to refinance
existing debt, while also counting towards Prudential plc's regulatory capital
requirements.
This press release is not an offer for sale of the securities in the United
States, and the securities may not be sold in the United States absent
registration or an exemption from registration under the U.S. Securities Act of
1933, as amended. Any public offering of the securities in the United States
will be made by means of a prospectus containing detailed information regarding
Prudential plc (the "Company") and the Company's management, including financial
statements. Such prospectus will be made available through the Company. The
Company has registered the offering in the United States.
- ENDS -
Not for distribution in the United States.
Enquiries to:
Media Investors/Analysts
Jon Bunn 020 7548 3559 James Matthews 020 7548 3561
William Baldwin-Charles 020 7548 3304 Marina Lee-Steere 020 7548 3511
Joanne Davidson 020 7548 3708
Notes to Editors
*Prudential plc, a company incorporated and with its principal place of business
in the United Kingdom, and its affiliated companies constitute one of the
world's leading financial services groups. It provides insurance and financial
services directly and through its subsidiaries and affiliates throughout the
world. It has been in existence for over 150 years and has GBP187 billion in
assets under management, (as at 31 December 2004). Prudential plc is not
affiliated in any manner with Prudential Financial, Inc, a company whose
principal place of business is in the United States of America.
Forward-Looking Statements
This statement may contain certain "forward-looking statements" with respect to
certain of Prudential's plans and its current goals and expectations relating to
its future financial condition, performance, results, strategy and objectives.
Statements containing the words "believes", "intends", "expects", "plans",
"seeks" and "anticipates", and words of similar meaning, are forward-looking.
By their nature, all forward-looking statements involve risk and uncertainty
because they relate to future events and circumstances which are beyond
Prudential's control including among other things, UK domestic and global
economic and business conditions, market related risks such as fluctuations in
interest rates and exchange rates, and the performance of financial markets
generally; the policies and actions of regulatory authorities, the impact of
competition, inflation, and deflation; experience in particular with regard to
mortality and morbidity trends, lapse rates and policy renewal rates; the
timing, impact and other uncertainties of future acquisitions or combinations
within relevant industries; and the impact of changes in capital, solvency or
accounting standards, and tax and other legislation and regulations in the
jurisdictions in which Prudential and its affiliates operate. This may for
example result in changes to assumptions used for determining results of
operations or re-estimations of reserves for future policy benefits. As a
result, Prudential's actual future financial condition, performance and results
may differ materially from the plans, goals, and expectations set forth in
Prudential's forward-looking statements. Prudential undertakes no obligation to
update the forward-looking statements contained in this statement or any other
forward-looking statements it may make.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned, thereunto duly authorized.
Date 15 July, 2005
PRUDENTIAL PUBLIC LIMITED COMPANY
By: /s/ Clare Staley
Head of Group Media Relations