Business
Refinancing and launch of debut bond
Refinancing and launch of debut bond.
About this update from Saga Plc
[{"type":"text","content":"\n \nRNS Number : 6659E SAGA PLC 10 May 2017 \n\nNOT FOR DISTRIBUTION OR RELEASE IN OR INTO THE UNITED STATES OF AMERICA (OR TO U.S. PERSONS), AUSTRALIA, CANADA OR JAPAN.\nTHIS 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.\n10 May 2017\nSaga plc\nRefinancing and launch of debut bond\n \nSaga 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.\nRefinancing of existing facilities\nWith 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.\nThe 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.\nThe 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.\nDebut bond offer\nThe £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 E...