Issue of senior guaranteed notes; £182 million of long term funding secured; good progress in October trading
25 November 2009
The Board of The Davis Service Group Plc (“the Group”) announces
that it has agreed to issue $259 million (£157 million) long term
senior guaranteed notes to US private placement investors. The
notes, which have maturities from December 2016 to December
2021(1), have been swapped into Euro at an average interest rate of
5.219%. In addition, the Group will issue £25 million of Sterling
senior guaranteed notes due December 2019 at 5.74%.
The closing date on which the funds will be received for the above issue is 17 December 2009. The funds will be used to repay borrowings under the existing Revolving Credit Facilities(2). The Group expects to be able to offset the impact of the higher interest rates arising on the US private placement notes in 2010 with good trading progress and strong free cash flow generation.
Kevin Quinn, Finance Director, commented,
“This is a key step in securing our long term financing. The Group is now much less dependent on the banking market for its future debt requirements. With the existing US private placement notes, we have £303 million of funding with maturities between May 2016 and December 2021 at an average fixed rate of 4.9% before tax or 3.6% post tax.”
Roger Dye, Chief Executive Officer, commented on current trading,
“The Group has continued to make good progress. October trading has been in line with our expectations and has continued the trends of the past three quarters, reconfirming the positive statements we made in our 23 October Interim Management Statement.”
The Group will release its preliminary results on 26 February 2010.
Davis Service Group
Roger Dye, Chief Executive
Kevin Quinn, Finance Director
Telephone 020 7259 6663
Financial Dynamics
Richard Mountain
Telephone 020 7269 7291
(2) The Group has two Revolving Credit Facilities, for £420 million and €200 million, which are both available to June 2012. Drawings under these facilities would have been £203 million on a proforma basis as at 30 June 2009, taking into account this issue.
The closing date on which the funds will be received for the above issue is 17 December 2009. The funds will be used to repay borrowings under the existing Revolving Credit Facilities(2). The Group expects to be able to offset the impact of the higher interest rates arising on the US private placement notes in 2010 with good trading progress and strong free cash flow generation.
Kevin Quinn, Finance Director, commented,
“This is a key step in securing our long term financing. The Group is now much less dependent on the banking market for its future debt requirements. With the existing US private placement notes, we have £303 million of funding with maturities between May 2016 and December 2021 at an average fixed rate of 4.9% before tax or 3.6% post tax.”
Roger Dye, Chief Executive Officer, commented on current trading,
“The Group has continued to make good progress. October trading has been in line with our expectations and has continued the trends of the past three quarters, reconfirming the positive statements we made in our 23 October Interim Management Statement.”
The Group will release its preliminary results on 26 February 2010.
For further information contact:
Davis Service Group
Roger Dye, Chief Executive
Kevin Quinn, Finance Director
Telephone 020 7259 6663
Financial Dynamics
Richard Mountain
Telephone 020 7269 7291
Notes
(1) Maturity of US notes as follows - $30 million (£18.2 million) to December 2016; $129 million (£78.2 million) to December 2019; $100 million (£60.6 million) to December 2021.(2) The Group has two Revolving Credit Facilities, for £420 million and €200 million, which are both available to June 2012. Drawings under these facilities would have been £203 million on a proforma basis as at 30 June 2009, taking into account this issue.
