5th Aug 2019 15:47
(Alliance News) - Tate & Lyle PLC said Monday it has priced a USD200 million debt private placement to go towards refinancing existing indebtedness, which will extend the group's debt maturity profile.
On November 19, the ingredients maker will issue USD100 million in 3.31% notes due 2029, and another USD100 million in 3.41% notes due 2031.
"We are delighted by the strong support shown again by private placement investors in Tate & Lyle. The notes will enable us to refinance the GBP200 million 6.75% bond that matures in November 2019, while maintaining strong levels of liquidity and extending the average maturity of our debt," said Chief Financial Officer Imran Nawaz.
"Issuing fixed-rate notes has allowed us to lock into attractive long-term interest rates, and achieve a cost reduction compared to the maturing debt," Nawaz added.
Shares in Tate & Lyle were down 2.5% at 724.40 on Monday.
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