18 Mar 2004
Prudential plc board changes
On 6 August 2004, Prudential plc issued US$250 million perpetual subordinated securities exchangeable into preference shares. They bear interest at 6.75% 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 2009. 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 6.75% preference shares on any interest payment date from 23 March 2010. Dividend payments on the preference shares are fully discretionary.
The securities were sold in the US market and are listed on the New York Stock Exchange. They are rated A by Standard & Poor's and Baa1 by Moody's. The proceeds will be used to refinance existing debt and for general corporate purposes.
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Notes to Editors:
James Ross is Deputy Chairman of National Grid Transco and holds non-executive directorships with McGraw Hill and Datacard in the United States and Schneider Electric in France. He is also Chairman of the Leadership Foundation for Higher Education.
Mr Ross has spent most of his career working for the BP Group, which he joined in 1962. He left in 1992 after four years as President and Chief Executive of BP America Inc and as a Managing Director of the British Petroleum Co plc. More recently, he has been Chief Executive of Cable and Wireless plc (1992-1995), Chairman of the Littlewoods Organisation (1996-2002) and Chairman of National Grid plc (1999-2002).
He graduated from Oxford University with an honours degree in Modern History and has a diploma (with distinction) in Advanced Studies in Business Management from Manchester Business School.