By Paul A. Harris
St. Louis, Aug. 11 - Kensington Group plc priced an upsized £50 million add-on to its unrated 9% subordinated notes due Dec. 21, 2015 at 99.52 to yield 8.91% on Friday, according to an informed source.
The notes priced at a 400 basis points spread to Libor, on top of the price talk.
Royal Bank of Scotland was the bookrunner.
Proceeds will be used for general corporate purposes, primarily to fund the growth of the company, which is a London-based residential mortgage business operator.
The add-on was upsized from £25 million.
The original £75 million priced in November 2005 at a spread to Libor of 450 basis points. Hence the company realized a 50 basis point savings with the add-on.
The source said that the deal was well received and added that demand surfaced during a non-deal roadshow last week.
The source added that the bookrunner went out with price talk on Wednesday and that the deal was ultimately upsized from £25 million based upon demand, with the order book containing a "good spread of quality names, some of which are new to the issue."
| Issuer: | Kensington Group plc
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| Amount: | £50 million (upsized from £25 million)
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| Maturity: | Dec. 21, 2015
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| Security description: | Add-on to 9% subordinated bonds
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| Bookrunner: | Royal Bank of Scotland
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| Coupon: | 9%
|
| Price: | 99.52
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| Yield: | 8.91%
|
| Spread: | Libor plus 400 bps
|
| Call protection: | Callable on Dec. 21, 2010 at par
|
| Step-up: | Coupon steps up to float at 500 bps after the call date
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| Trade date: | Aug. 11
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| Settlement date: | Aug. 31 flat
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| Ratings: | Non-rated
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| Original issue: | £75 million priced in November 2005
|
| Total issue size: | £125 million
|
| Price talk: | Libor plus 400 bps
|
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