Last checked at 30 Jul 2010 11:01
30 July 2010
International Personal Finance plc ("IPF")
Bond Issue
IPF today announces that, as part of its strategy to diversify its sources of funding and extend its debt maturity profile, it has priced €225 million 5 year bonds (the "Notes") at a fixed coupon of 11.5%. The Notes are to be issued under its euro medium-term note programme (the "Programme") established on 19 April 2010. IPF has a long-term credit rating of BB+ from Fitch Ratings and the Notes are expected to be rated BB+ by Fitch.
The proceeds of the issue will be used to pay down a portion of existing bank borrowings. As a result of this transaction Group interest costs are expected to increase from just over 5% of revenue to approximately 7.5% for 2011. Interest rate swaps relating to these bank borrowings will be closed out, which will result in a one-off cost of £6m which will be treated as an exceptional item in the reporting of the Group results.
The book-runners were Citigroup Global Markets Limited and HSBC Bank plc.
Commenting, David Broadbent, Group Finance Director, said:
"We are delighted to announce our inaugural public bond issue. Its success reflects our strong financial position and good trading performance. IPF has excellent opportunities for sustained, profitable growth and this transaction is important because it strengthens our overall funding structure by diversifying and extending the maturity of our debt and provides finance for growth in new and existing markets".
Rosamond J Marshall Smith
General Counsel & Company Secretary
+44 (0) 113 285 6842
For further information contact:
International Personal Finance plc
Helen Spivey (Investor Relations)
+44 (0) 113 285 6876
Victoria Richmond (Media)
+44 (0) 113 285 6873
Finsbury
James Leviton
Charles Watenphul
+44 (0) 207 251 3801