By Paul Deckelman
New York, May 10 – Saga plc priced a £250 million issue of seven-year senior notes as part of an overall debt refinancing plan, high-yield syndicate sources said Wednesday.
Those notes will carry a 3 3/8% coupon and mature in 2024.
HSBC Bank plc, Mizuho International plc and the Royal Bank of Scotland plc – the latter trading as NatWest Markets – were the joint active lead managers on the bond deal, while Barclays Bank plc was the joint lead manager.
The bonds will be guaranteed by Saga Services Ltd. and Saga Mid Co Ltd.
The company – a Kent, England-based provider of products and services for people aged 50 and over – was selling the bonds as part of an overall effort to refinance its existing bank debt facilities, which are scheduled to mature in April of 2019. Any leftover proceeds would go for general corporate purposes. The overall level of debt will not change.
Besides the bonds, the refinancing will include a £200 million five-year term loan facility and a £100 million five-year revolving credit facility.
In a regulatory filing, Saga said that “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 company said that the refinancing “will strengthen the group's balance sheet by extending the maturity profile and increasing diversity of the sources of its borrowings.”
| Issuer: | Saga plc
|
| Guarantors: | Saga Services Ltd. and Saga Mid Co Ltd.
|
| Amount: | £250 million
|
| Maturity: | 2024
|
| Securities: | Senior notes
|
| Joint active lead managers: | HSBC Bank plc, Mizuho International plc, the Royal Bank of Scotland plc (NatWest Markets)
|
| Joint lead manager: | Barclays Bank plc
|
| Coupon: | 3 3/8%
|
| Trade date: | May 10
|
| Settlement date: | May 12
|
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