Stagecoach will take a £23million hit from repaying a bond issue which was due to expire next year, after its recent successful raising of cheaper finance.
The transport giant issued £400m of new bonds with a coupon of four per cent at the end of September and said the issue had attracted “high quality” investors.
Now the group has said its £400m of guaranteed bonds with a 5.75 per cent coupon will be redeemed in full on October 30 at the redemption price with interest and the listing of the bonds cancelled from November 17.
It said the premium payable for early termination would be around £23m, which would be taken as an exceptional item in the six months to October 31.
Ross Paterson, finance director, said the group had decided to proceed now after reviewing its options. The shares were up 8.1p to 340.1p, a rise of 2.4per cent.
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