Business
Single Bank Facility
Single Bank Facility.
About this update from Standard Life Plc
[{"type":"text","content":"\n \nRNS Number : 0456N Phoenix Group Holdings 23 July 2014 \n \n\n \nPhoenix in comprehensive refinancing of debt structure\n \nPhoenix Group Holdings (\"Phoenix\" and, together with its subsidiaries, the \"Group\") is today announcing a comprehensive refinancing of its senior debt structure, creating a new single debt facility while also reducing the Group's debt and gearing. \n \nThe refinancing is in line with the Group's strategy to simplify and strengthen the Group's balance sheet, supporting its aim to achieve an investment grade rating in the future. It also enhances Phoenix's ability to deliver on its ambitions to lead the consolidation of the UK closed life fund sector.\n \nHighlights\n \n· New £900 million, unsecured 5 year bank facility to refinance the entirety of the Group's existing two bank facilities and PIK notes, replacing the two legacy debt silos (Pearl and Impala) with a single debt facility\n· £206 million prepayment of debt to be made on drawdown of the new facility. Total senior debt has therefore reduced from over £1.7 billion at the start of 2014 to £1.2 billion1, consisting of the new £900 million facility and the £300 million senior bond issued on 7 July\n· Lower interest costs with ability for margin reductions if the Group lowers gearing and/or achieves an investment grade rating\n· Supports Phoenix's sustainable dividend policy\n· Strengthens Phoenix's financial flexibility to pursue its growth strategy of acquiring closed life funds\n \nClive Bannister, Group Chief Executive, commented: \n \n\"Following our successful return to the bond market earlier this month, this new bank facility is the next step in Phoenix Group's development. The new facility allows us to simplify the Group's structure and offers us greater flexibility as we execute our growth strategy. Furthermore, under the terms of the new agreement, we have the ability to further reduce the margin on the new facility as we seek a future investment grade credit rating.\"\n \nSummary of transaction\n \nAt the time of the issue of the £300 million 5.75% 7 year senior bond on 7 July, Phoenix stated that it was in discussions with a group of ...