25 April 2013
NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, DIRECTLY OR INDIRECTLY, IN THE UNITED STATES, CANADA, AUSTRALIA, JAPAN OR IN ANY OTHER JURISDICTION WHERE IT IS UNLAWFUL TO RELEASE, DISTRIBUTE OR PUBLISH THIS ANNOUNCEMENT
PENDRAGON PLC
COMPREHENSIVE REFINANCING AND MATURITY EXTENSION
Pendragon is pleased to announce the agreement of a comprehensive debt refinancing, which is expected to complete next week. When completed, this will considerably extend the maturity of the Group's debt, eliminate costly and restrictive legacy debt, and places the Group's finances in a stronger position for the future.
The refinancing consists of a new £175 million 6.875% 7-year bond issue, which was priced earlier today, and a new £145 million 4-year revolving credit bank facility provided by four banks and expiring on 30 June 2017. The margin on the new bank facility will initially be 3.5%, but will reduce as the ratio of net debt to underlying EBITDA (after stocking interest) falls, and will be 2.5% when that ratio is under 1.5x.
The Group will repay and cancel its legacy high-coupon debt private placements, the cross-currency swaps associated with them, and its existing bank facility, all of which were due to mature in June 2014. The costs associated with that repayment and cancellation, and other transaction costs, are estimated at £12.9 million.
This refinancing exercise extends considerably the Group's debt maturity.
Trevor Finn, Chief Executive commented "We are delighted to announce the refinancing of the Group which brings stability and simplicity to our financial structure. We will be repaying our costly and restrictive legacy debt, and considerably extend the maturity of our debt arrangements. I am pleased to welcome our new bondholders as stakeholders. The Group remains on track to achieve its net debt: underlying EBITDA target of 1.5x by the end of next year"
Enquiries:
Pendragon PLC Tel: 01623 725100
Trevor Finn, Chief Executive
Tim Holden, Finance Director
Finsbury Tel: 0207 151 3801
Gordon Simpson
Philip Walters
This information is provided by RNS
The company news service from the London Stock Exchange
The press release shall not constitute an offer to sell or the solicitation of an offer to buy securities. There will not be any sale of these securities in any such state or country in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any state or country. This press release may not be distributed, directly or indirectly in or into the United States or to any U.S. person (as defined in Regulation S under the U.S. Securities Act of 1933, as amended (the "Securities Act")). This press release is not an offer of securities for sale or the solicitation of any offer to buy securities in the United States or in any jurisdiction in which such offer or sale would be unlawful. The securities referred to herein have not been and will not be registered under the Securities Act, and may not be offered or sold in the United States absent registration or exemption from registration under the Securities Act. This press release may include projections and other "forward-looking" statements within the meaning of applicable securities laws. Any such projections or statements reflect the current views of Pendragon PLC about further events and financial performance. No assurances can be given that such events or performance will occur as projected and actual results may differ materially from these projections. Within the United Kingdom, this announcement is directed only at persons having professional experience in matters relating to investments who fall within the definition of "investment professionals" in Article 19(5) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 ("relevant persons"). The investment or investment activity to which this announcement relates is only available to and will only be engaged in with relevant persons and person who receive this announcement who are not relevant persons should not rely or act upon it.
