27th Oct 2008 14:47
Punch Taverns plc (the "Company")
Re: Convertible Bond Buyback
Punch Taverns announces that it has repurchased, in a number of recent market transactions, a total of 24.0% of the outstanding nominal value of the 5.00 per cent. Convertible Bonds due 2010 (the "Bonds") which were issued by Punch Taverns (Redwood JerseyCo) Limited. It is the intention of the Company to arrange for these Bonds to be cancelled. Following cancellation there will be a nominal value of £209m of the Bonds outstanding.
The Bonds have been repurchased at an average price of £75 per £100 of nominal, equating to total cash purchases of £49.5m and reducing the redemption value due in December 2010 by some £70.8m. These purchases have been funded from existing group cash resources.
The Company will continue to monitor its use of cash to maximise the benefit to shareholders.
Giles Thorley, Chief Executive, commented:
"The strong cashflows generated by our business have enabled us to realise the opportunity offered by the current weakness in debt markets. We have redeemed 24% of our convertible bonds, two years ahead of schedule and have saved over £20m in the process."
27 October 2008
Enquiries:
Punch Taverns plc +44 (0)1283 501728Giles Thorley Chief Executive Phil Dutton Finance Director Ed Bashforth Head of Corporate Finance
College Hill +44 (0)20 7457 2020 Justine Warren Matthew Smallwood
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Punch Taverns PLC