6th Mar 2019 11:10
LONDON (Alliance News) - Pearson PLC on Wednesday said it subsidiary, Pearson Funding Five PLC, has launched a tender offer for up to EUR75 million of its EUR500 million 1.875% notes due 2021, of which EUR250 million currently remain outstanding.
The FTSE 100-listed publisher said the transaction seeks to extend the maturity of its debt by extending the maturity of the revolving credit facility to 2024 from 2021 and reducing the bond debt maturing in 2021.
"These transactions, together with the improvement of our credit rating outlook by Moody's to stable this week, mark further progress in the strengthening of our balance sheet, which has seen us reduce bond debt by over USD2.5 billion since January 2017," said Pearson Chief Financial Officer Coram Williams.
On Monday, Moody's Investors Service changed the outlook on Pearson to stable from negative and affirmed its Baa2 senior unsecured ratings. The changes reflect Pearson's "healthy credit metrics" driven by its conservative balance sheet management in a challenged revenue growth environment, Moody's said.
Pearson shares were trading 1.2% lower on Wednesday at 822.40 pence each.
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