10th Jan 2017 07:50
LONDON (Alliance News) - Pension book consolidator Phoenix Group Holdings PLC said Tuesday it reached its cash generation targets for 2016 and is planning a debt issue to reduce its outstanding bank debt.
Phoenix said during 2016 it generated GBP486.0 million in cash, including GBP117.0 million from the integration of the AXA Wealth pensions and protection businesses it acquired in November.
The company said it therefore achieved its cash generation target of between GBP350.0 million to GBP450.0 million for the year, and re-iterated its expectation of generating at least GBP250.0 million from the AXA businesses within six months of the acquisition.
Phoenix said that as at December 31, 2016, it had GBP850.0 million outstanding in its revolving credit facility, including the conversion of the GBP250.0 million short-term facility partly used to finance its acquisition of the Abbey Life insurance businesses.
Phoenix also said its financing vehicle PGH Capital PLC has established a GBP3.00 billion note programme to be guaranteed by Phoenix. A Tier 3 debt transaction "will follow, subject to market conditions," said Phoenix, with the proceeds to be used to reduce the outstanding bank debt.
By Adam Clark; [email protected]
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