DTY.L Share News (DTY)

By Rachael Gormley Of DOW JONES NEWSWIRES LONDON (Dow Jones)--U.K. funeral service group Dignity PLC (DTY.LN) expects to secure net proceeds of around GBP80 million from a potential bond issue, Chief Executive Mike McCollum said Friday, the majority of which would be returned to shareholders. "It's something we've been working hard on for a while and we've had a lot of positive conversations with bond holders and rating agencies," McCollum told Dow Jones Newswires. "It's a matter of weeks rather than months." Dignity said Friday it is investigating the possibility of issuing further secured notes due to attractive bond yields. It needs the consent of bond holders as well as the approval of rating agencies to do so. However, it expects to recapitalize the group to a lower level than it has been previously, and said that if it does issue further secured notes, it expects the majority of the proceeds to be returned to shareholders. "There are one or two small acquisitions we're looking at but the majority will be returned," he added. McCollum said the group has in the past been leveraged to around six times earnings before interest, taxes, depreciation and amortization, but expects it to be nearer to five times in future due to its focus on debt. -By Rachael Gormley, Dow Jones Newswires; 44-20-7842-9308; rachael.gormley@dowjones.com (END) Dow Jones Newswires July 30, 2010 04:04 ET (08:04 GMT)