Status: Performing

All payments are on time

All covenants met

BACK TO MARKET


Amount

£175,000,000

Current Yield

7.6%

*
Estimated Yield to Maturity

6.7%

**
Maturity Date

15 Nov 2021

Interest Payment Frequency

6m

Next interest payment

15 Nov 2017

Asset Security

Second Ranking

Industry Type

Financial and Insurance related

Next Call

02 August 2017 @ 103.94

ISIN

XS0985950152


Business Description

Domestic & General is the leading specialist provider of warranties and warranty services for domestic appliances and consumer electronic products in its home UK market and a leading specialist provider in several of its international markets, with strong and growing international operations in Germany, Spain, Portugal, France, Italy and Australia. The original predecessor company, The Western Australian Insurance Company, was originally founded in 1912 in Perth, Australia to insure sheep and cattle during transportation. Over the years, the company has evolved from providing insurance for livestock transportation to offering numerous other products including, at different points, life, motor, caravan and pet insurance. One of the biggest breakthroughs in the company's history, and the one that has led it to its current position as one of the market leaders of specialist warranty services in the United Kingdom with a strong and growing presence in Western Europe and Australia, was the launch of breakdown cover for televisions in 1950. Early televisions, using fragile cathode ray tube and valve technology, were the cutting-edge consumer goods of their day and customers were keen on protecting them. Using their specialist knowledge and working with a range of commercial partners, the company quickly became known for the value and quality of its protection services. It was one of the first companies to offer protection for the cathode ray tubes in the black and white televisions that were increasingly appearing in UK households in the 1950s and from there it grew rapidly by responding to changing lifestyles and technological improvements. The company introduced cover for kitchen equipment in 1977 and for central heating in 1978. From the early 1980s, it steadily built its position as a leading provider of insurance on domestic and electrical appliances and heating systems, gradually withdrawing from other areas of general insurance. Domestic & General Group plc (now known as Domestic & General Group Limited) was listed on the London Stock Exchange in 1988. In 1989 it passed the one million customer mark and in 1992 it began its European expansion by opening our Spanish office, followed by the establishment of its German office in 1994. Their first contact centre opened in 1996 and quickly expanded to providing 24 hour service. Their white, brown and heating service networks debuted the same year and the new millennium brought the launch of specialist protection for satellite TV equipment. The company also expanded its contact centre capability to provide outbound and telesales, which remains a crucial element of sales operations today. In 2007 the Group was taken private by Advent International Corporation and in the same year it opened its office in Australia. In 2010 it opened an office and sold its first plans in Italy. On 19 December 2013, CVC Capital Partners completed its acquisition of the Group.


Capital Structure

Source: Public Company Information
* An asterisk next to an item indicates there is additional information available if you hover over it. You can also find a definition of the terms used on this page in our Glossary here
Based on purchase price estimated at the time of CVC purchase in 2013


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* This is the estimated return an investor can expect to receive over the next 12 months expressed in percentage terms. It is the sum of the expected interest payments over the year and where the coupon is partly dependent on Libor uses market based Libor forecasts at each coupon date and also takes into account the Note's current price. It is gross of taxation and our Service Fee. The current yield is therefore an estimated return only and is not guaranteed and may be revised in the future.
** This is an estimated annualised return gross of taxation and our Service Fee assuming the investment is held to maturity. It equates the present value of expected future interest payments of a Note into an annual yield across its life relative to the Note's current price. Where the interest coupon is partly dependent on Libor it uses market based forecasts of Libor and assumes that all interest is re-invested at a rate equal to the Yield to Maturity. For floating rate coupons because current market based forecasts are for Libor to increase in future years the calculation of Yield to Maturity assumes the interest paid to investors will be higher in future years. However, there is no guarantee that the Bank of England will raise interest rates or that Libor will increase as a result. In addition, any changes to the financial circumstances of the company or changes in the economic terms of the underlying loan could also impact future interest payments. The Yield to Maturity is therefore an estimated return only and is not guaranteed.

Status: Performing


Notes:

The company currently has no outstanding notes.

Capital at risk. No FSCS cover. See Risk Statement.

 

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