CORRECTED-British healthcare firm Bupa extends 800 mln pound credit line
(Corrects to read private healthcare, not health insurance, paragraph 13)
By Carolyn Cohn
LONDON Aug 6 (Reuters) - British private healthcare group Bupa has extended an 800 million pound ($1.25 billion) syndicated credit facility by three years to 2020 at least to strengthen its capital buffers, its chief executive said.
European Union Solvency II regulations for insurers come into force in January 2016, and are expected to require firms to set aside more capital in the event of shocks to their business.
Bupa gets around 70 percent of its revenue from health insurance but also operates hospitals, care homes and medical clinics in many of its businesses around the world.
"We need headroom in terms of solvency capital," Stuart Fletcher told Reuters in a telephone interview.
Fletcher said the extension had been negotiated at better terms than the previous facility. It has been extended to 2020 from the previous 2017 maturity date, with an option to extend again, to 2022.
The company issued a 350 million pound seven-year bond last year with a coupon of 3.375 percent, currently trading at a yield of 3.0 percent.
Fletcher said there were no plans for more debt issuance in the next 12 months. Continuación...