Saga Regulatory News (SAGA)

NOT FOR DISTRIBUTION OR RELEASE IN OR INTO THE UNITED STATES OF AMERICA (OR TO U.S. PERSONS), AUSTRALIA, CANADA OR JAPAN.

THIS ANNOUNCEMENT IS FOR INFORMATION PURPOSES ONLY AND DOES NOT CONSTITUTE OR FORM PART OF ANY OFFER INVITATION TO SELL OR ISSUE, OR ANY SOLICITATION OF AN OFFER TO PURCHASE OR SUBSCRIBE FOR, ANY SECURITIES OF SAGA PLC. NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION IN OR INTO, OR TO ANY PERSON LOCATED OR RESIDENT IN, ANY JURISDICTION WHERE IT IS UNLAWFUL TO RELEASE, PUBLISH OR DISTRIBUTE THIS ANNOUNCEMENT. PLEASE SEE THE IMPORTANT NOTICE AT THE END OF THIS ANNOUNCEMENT.

10 May 2017

Saga plc

Refinancing and launch of debut bond

Saga plc ("Saga" or "the Group"), the UK's specialist in products and services for life after 50, announces a refinancing of existing bank facilities (the "Refinancing") with the launch of a debut £250 million seven year senior unsecured bond, a £200 million five year term loan facility and a £100 million five year revolving credit facility.

Refinancing of existing facilities

With the Group's existing facilities expiring in April 2019 and given the positive backdrop in the debt market, we have decided that this is a good time to refinance our facilities.

The Refinancing will strengthen the Group's balance sheet by extending the maturity profile and increasing diversity of the sources of its borrowings. The overall weighted average interest costs of the new arrangement is in line with the existing facilities but the Group expects to incur approximately £4 million of one-off non-cash costs associated with the unamortised facility fees of the existing facilities.

The proceeds will be used by the Group for refinancing the Group's existing bank facilities expiring April 2019 and thereafter for general corporate purposes. The overall level of indebtedness will not change.

Debut bond offer

The £250 million senior unsecured bonds due 2024 (the "Bonds") are to be guaranteed by Saga Services Limited and Saga Mid Co Limited (the "Guarantees"). The Bonds are expected to be issued on 12 May 2017, subject to the satisfaction or waiver of certain customary closing conditions, and to be admitted to the Irish Stock Exchange's Official List and to trading on the Global Exchange Market of the Irish Stock Exchange.

The Bonds will bear interest at a rate of 3.375 percent and interest is paid six monthly in arrears.

HSBC Bank plc, Mizuho International plc and The Royal Bank of Scotland plc (trading as NatWest Markets) (together, the "Joint Active Lead Managers") and Barclays Bank PLC (a "Joint Lead Manager") have been mandated in connection with the Bonds.

HSBC Bank plc, Mizuho Bank, Ltd. and The Royal Bank of Scotland plc (as a "Mandated Lead Arranger" and "Bookrunner") and Barclays Bank PLC (as "Mandated Lead Arranger") have been mandated in connection with the new bank facilities.

Jonathan Hill, Chief Financial Officer at Saga plc, commented:

"We are pleased to have secured this refinancing which will strengthen the Group's balance sheet and provide us with additional flexibility, whilst further diversifying our debt structure. We thank our banks for their continued support."

Important Notice 

This announcement shall not constitute an offer of securities for sale in the United States. The Bonds and the Guarantees have not been, and will not be, registered under the United States Securities Act of 1933, as amended (the "Securities Act") or the securities laws of any state of the United States or any other jurisdiction and the securities and the Guarantees may not be offered or sold within the United States except pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the Securities Act and applicable state or local securities laws.

This announcement is for information purposes only and is addressed to and directed only at(i) persons who have professional experience in matters relating to investments falling within Article 19(5) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005, as amended (the "Order"), (ii) persons who are high net worth entities falling within Article 49(2)(a) to (d) of the Order, or (iii) other persons to whom they may otherwise lawfully be communicated (all such persons together being referred to as "relevant persons"). This announcement must not be acted on or relied on in the United Kingdom, by persons who are not relevant persons. Any investment or investment activity to which this announcement relates is available only to relevant persons in the United Kingdom and will be engaged in only with relevant persons.

END

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Notes to editors

Saga is a specialist in the provision of products and services for life after 50. The Saga brand is one of the most recognised and trusted brands in the UK and is known for its high level of customer service and its high quality, award winning products and services including cruises and holidays, insurance, personal finance and publishing. saga.co.uk