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14 Oct 2008 12:52
Rentokil Initial plc
£50m Floating Rate Notes due 2013
Rentokil Initial plc (the "Company") announces that it has entered into a commitment with an investor who will purchase £50m Floating Rate Notes due 2013 (the "FRNs"). The FRNs are expected to be issued at par under the Company's existing Euro Medium Term Note Programme and carry a coupon of LIBOR + 3.25%. The FRNs are expected to be issued before the end of October 2008 and to be guaranteed by Rentokil Initial 1927 plc, a wholly owned subsidiary of the Company.
Rentokil Initial 1927 plc currently guarantees the obligations of the Company to its bondholders, banks and certain other financial counterparties. These guarantees were due to expire on 19 November 2008 but will now be extended to match the maturity of the Company's £300 million 5.75 per cent. Notes due 2016, issued by the Company in March 2006, and the FRNs, whichever maturity is the later.
During the last two months, Rentokil Initial has announced the issue of £125m of new debt securities (being the FRNs and the £75 million Floating Rate Reset Notes due 2033 (the "PCRs")). The Company's £250m 6.125 per cent. notes due 2008 (the "Notes") will mature on 19 November 2008 and will be repaid from the Company's bank facilities. The Company estimates that it will have at least £350m of headroom in its committed facilities after repaying the Notes. At least £100m of that headroom is provided by a facility which is due to expire in 2012. The balance is provided by a second facility which is extendable at the Company's option to January 2010.
After November 2008, the next maturity of the Company's bond indebtedness will be in 2013 if the holders of the PCRs exercise their right to 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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