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(Alliance News) - Saga PLC on Friday reported pricing of its offering of GBP250 million 5.5% guaranteed unsecured bonds due 2026, launched on Tuesday.
The company, which provides products and services for people over 50, said the bonds will be guaranteed by Saga Services Ltd and Saga Mid Co Ltd. The bonds will be issued at par and interest will be paid semi-annually in arrear.
It is expected that the offering will close on Friday next week, Saga said.
The proceeds of the offering will be used by Saga to repay in full its existing GBP70 million term loan, to fund the settlement of a concurrent tender offer for up to GBP100 million of its existing outstanding unsecured bonds, and for general corporate purposes.
"We are pleased with the strong response to this bond issuance as we continue to demonstrate good progress against all our strategic priorities," said Saga Chief Financial Officer James Quin.
"The completion of this offering further strengthens our financial position and gives us greater financial flexibility as we return the business to sustainable growth and create significant long-term value for all our stakeholders," added Quin.
Saga shares closed 0.7% lower in London on Friday at 439.40 pence each.
By Evelina Grecenko; evelinagrecenko@alliancenews.com
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