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Issue of Debt

31st Mar 2009 16:25

31 March 2009 FIRSTGROUP PLC £350M BOND ISSUE

FirstGroup plc ('The Group') is pleased to announce the successful launch of £350m 12-year bonds.

In line with the Group's strategy to extend its debt duration and reduce reliance on bank debt the proceeds will be used to repay existing debt. The bond has a coupon of 8.75%.

Commenting on the issue, Nick Chevis, Acting Finance Director, said:

"We are pleased by the success of the launch which was more than 50% oversubscribed and attracted a high quality order book. This will be the Group's fourth bond issue and we are delighted by the continuing support from fixed-income investors demonstrating the strength and resilience of the Group.

"The launch represents further progression of our plans to reduce reliance on bank debt and extend our debt maturity profile."

The issue is expected to close on 8 April 2009.

FirstGroup Contacts:

Nick Chevis, Acting Finance Director, Tel: 020 7291 0512

Rachael Borthwick, Corporate Communications Director, Tel: 020 7291 0508

Ian Weldon, Group Treasurer, Tel: 01224 303530

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