PERTH-based bus and rail company Stagecoach has announced its successful launch of a £400 million bond issue, which it declared had attracted “high-quality” investors.
Stagecoach, which also announced a one-year extension of £535m of banking facilities to October 2020, said that the proceeds of the bond issue would be used for general corporate purposes including repayment of debt.
Finance director Ross Paterson said: "We are pleased by the successful launch of this bond issue and the continuing support we receive from the debt capital markets.”
He added: “This issue attracted a range of high-quality investors, reflecting the group's good financial position and positive prospects. This bond issue, together with the one-year extension of the bank facilities, ensures that the group continues to have an appropriate mix of long-term debt, enabling it to plan and invest with some certainty."
The company told the stock market that it expected the 10-year bonds, which have an annual coupon of four per cent, to be issued on September 29. The joint bookrunners for the bond issue are Barclays, BNP Paribas, and HSBC.
Stagecoach declared that it had “irrevocable commitments from banks to extend the duration of its £535m committed, bi-lateral bank facilities to October 2020, which also extends the average duration of the group’s debt”.
It added: “In due course, Stagecoach intends to review its options for the existing £400m of 5.75 per cent bonds due to mature in December 2016.”
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