LifeStar Holding plc - IPO, Exchange Offer & Bond Issue

On 22 April 2021, LifeStar Holding plc (“LifeStar”) announced that it submitted an application for the admissibility to listing of the shares of LifeStar Insurance Limited (“LifeStar Insurance”) which is the Group’s life insurance subsidiary. LifeStar intends to offer its shareholders the possibility of participating in a Share Exchange Offer, pursuant to which, its shareholders will have the possibility to exchange their shares in LifeStar for the shares in LifeStar Insurance. A detailed timeframe for the IPO and listing of LifeStar Insurance as well as the Exchange Offer will be announced once an IPO Prospectus is approved. It is anticipated that following approval by the Listing Authority, the IPO Prospectus will be published by 30 April 2021. The proceeds from the sale of the shares in LifeStar Insurance are earmarked for (i) the redemption the €10 million 5% unsecured bonds maturing on 2 June 2021; and (ii) the repayment, in full or in part, a €3 million bank loan that falls under the Malta Development Bank ‘COVID-19 Loan Guarantee Scheme’.

In addition, LifeStar explained that LifeStar Insurance intends to proceed with a public offer of €10 million new subordinated bonds (subject to an over-allotment option of €3 million) and that a formal application in this respect has already been made. The new bonds will qualify as Tier 2 capital under Solvency II and holders of the €10 million 5% unsecured bonds of LifeStar (which mature on 2 June 2021) will have the option to exchange their bonds for the new bonds to be issued by LifeStar Insurance. A detailed timeframe for the issue of the new bonds by LifeStar Insurance and the Bond Exchange will be announced once the Subordinated Bond Prospectus is approved by the Listing Authority.

In conclusion, LifeStar explained that the LifeStar Insurance IPO and the LifeStar Insurance Subordinated Bond issue are part of a wider restructuring exercise of the LifeStar Group. As part of the process, LifeStar added that it no longer intends to pursue the roll-over of its €10 million 5% unsecured bonds.

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