9th Oct 2020 09:54
(Alliance News) - Serco Group PLC on Friday has issued USD200 million in loan notes through a private placing.
The Hook, England-based public services provider said the notes have maturities five, seven, ten and 12 years, with a weighted average maturity of nearly eight years.
The average interest rate on the new loan notes is fixed at 3.6% , which compares to a blended rate of 5.3% for existing notes.
"A strong capital structure is essential in providing a base for the ongoing execution of our strategy. We are therefore pleased to be able to secure long term debt at attractive interest rates. This is the first time Serco has accessed the US private placement market in more than seven years and was possible due to our low financial leverage and resilient business model," the company stated.
Shares in Serco were up marginally at 128.06 pence on Friday in London.
By Dayo Laniyan; [email protected]
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