(Alliance News) - National Express Group PLC on Tuesday said it plans to launch a benchmark inaugural hybrid transaction in order to partially refinance upcoming debt.
The FTSE 250-listed transport operator said the transaction will take place provided market conditions support it, and following fixed income investor calls. National Express is expecting the hybrid instrument to be rated Ba1 by Moody's and BB+ by Fitch, with 50% equity credit from both. The instrument will be accounted for 100% as equity under IFRS accounting rules.
"The purpose of the transaction is to partly refinance upcoming debt with a non-dilutive hybrid capital instrument designed to reinforce balance sheet strength, underpin covenant headroom, support investment grade credit ratings and provide ongoing financial flexibility to position the business strongly through 2021 and beyond," said National Express.
Shares in Birmingham-headquartered National Express were down 1.7% at 245.00 pence in London on Tuesday.
By Anna Farley; annafarley@alliancenews.com
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