14th Oct 2009 18:26
14 October 2009
Provident Financial plc launches and prices £250 million bond issue
Provident Financial plc today announces that it has launched and priced £250 million 10 year fixed rate bonds. The bonds carry a semi-annual coupon of 8% and are expected to be rated BBB+ by Fitch Ratings.
The issue is priced at par equating to a spread over gilts of 449.2 basis points. Lloyds TSB Bank plc and The Royal Bank of Scotland plc acted as joint book runners and HSBC Bank plc and JPMorgan Cazenove Limited acted as co-lead managers of the issue.
The tender offer process for the company's £100,000,000 7.125% Subordinated Step-Up Bonds due 2015 announced earlier today will expire at 4:00 p.m. (London time) on 20 October 2009.
Andrew Fisher, Finance Director of Provident Financial plc said:
"The strong investor support for the bond issue reflects the underlying financial strength of Provident Financial, its performance and clear strategy. This issue diversifies Provident Financial's funding sources and further strengthens its balance sheet."
ENDS
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