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14 Oct 2008 12:52
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Rentokil Initial plc
Β£50m Floating Rate Notes due 2013
Rentokil Initial plcΒ (theΒ "Company")Β announces that it has entered into a commitment with an investorΒ who will purchase Β£50m Floating Rate Notes due 2013Β (the "FRNs"). TheΒ FRNsΒ are expected to beΒ issuedΒ at parΒ underΒ the Company'sΒ existingΒ Euro Medium Term Note ProgrammeΒ and carry a coupon of LIBOR +Β 3.25%.Β Β The FRNs are expected to be issued before the end ofΒ October 2008Β and to beΒ guaranteed by Rentokil Initial 1927 plc, a wholly owned subsidiary of the Company.
Rentokil Initial 1927 plcΒ currently guarantees the obligations ofΒ the CompanyΒ to its bondholders, banks and certain other financial counterparties. These guaranteesΒ wereΒ due to expire on 19Β November 2008Β but will nowΒ be extendedΒ toΒ match the maturity of the Company's Β£300Β millionΒ 5.75 per cent.Β NotesΒ dueΒ 2016,Β issued by the Company inΒ March 2006, and the FRNs, whicheverΒ maturityΒ is the later.
During the last two months, Rentokil Initial has announced the issue of Β£125m of newΒ debt securities (beingΒ the FRNs and theΒ Β£75 million Floating Rate Reset Notes due 2033 (the "PCRs")). TheΒ Company's Β£250m 6.125 per cent. notes due 2008 (the "Notes")Β will mature on 19Β November 2008 and will be repaid from the Company's bank facilities. The Company estimates that it will have at least Β£350m ofΒ headroomΒ in its committed facilities after repaying theΒ Notes.Β Β At least Β£100m ofΒ thatΒ headroomΒ isΒ provided by a facility whichΒ is due toΒ expireΒ in 2012. The balance is provided by a second facility which is extendable at the Company's option toΒ JanuaryΒ 2010.Β
After November 2008, the next maturityΒ of the Company's bond indebtedness will be in 2013 if the holders of the PCRs exercise their right toΒ require repayment.
For further information
Shareholder/analyst enquiries:
Katharine Rycroft, Head of Investor Relations Rentokil Initial plc 020 7592 2700
Media enquiries:
Malcolm Padley, Head of Corporate Communications Rentokil Initial plc 020 7592 2700
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