LONDON - J.P. Morgan Securities PLC announced today that it will coordinate the stabilization period for Nippon Life Insurance (NS:LIFI) Company's newly issued subordinated notes, starting Thursday. The securities, described as 30-year non-call 10-year fixed to fixed step-up callable dated subordinated notes, have an aggregate nominal amount of EUR 500 million and will be listed in Singapore.
The stabilization period, which is expected to end no later than February 16, 2025, may include over-allotment of securities not exceeding 5% of the aggregate nominal amount. This potential over-allotment is part of a common practice known as "greenshoe option," which allows underwriters to stabilize a new issue after it comes to market.
As stabilization manager, J.P. Morgan Securities PLC, along with other managers including Barclays (LON:BARC), BNP Paribas (OTC:BNPQY), Citi, HSBC, BofA, and MS, may undertake transactions to support the market price of the securities. These transactions can occur on the over-the-counter market, with the aim of maintaining a price higher than what might otherwise prevail. However, there is no guarantee that stabilization will occur; if initiated, it can be halted at any time but must conclude within the specified period.
The offer and the related stabilization actions are directed at qualified investors outside the United Kingdom (TADAWUL:4280), or those within the UK who have professional experience in investment matters. The announcement stresses that the securities are not being offered for sale in the United States and have not been registered under the US Securities Act of 1933. As such, the securities may not be offered or sold in the US without registration or an exemption from registration, and there will be no public offering of the securities in the United States.
This move by Nippon Life Insurance Company and the subsequent stabilization measures are standard procedures in the issuance of such financial instruments. The announcement is based on a press release statement and is intended for informational purposes only.
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