Premier Foods planning note redemption to save on interest
By Josh White
Date: Tuesday 26 May 2020
(Sharecast News) - Premier Foods has notified HSBC of its intention to redeem £80m of the £210m outstanding from its senior secured 5.0% plus LIBOR floating rate notes due July 2022, it announced on Tuesday.
The London-listed firm said that was in line with requirements of the indenture of the notes.
It said the partial redemption was further evidence of its "increasing momentum", adding that it was "clear demonstration" of its cash generating characteristics.
Following the completion of the partial redemption, the group said it expected to save more than £4m each year in interest costs.
"The group will continue on its deleveraging path, and as it does so, the options for cash deployment and capital allocation become greater," the Premier Foods board said in its statement.
Further to the certificate, the group confirmed that, under the terms of the indenture, £80m of the notes would be redeemed at par, plus accrued and unpaid interest up to but excluding the redemption date.
The redemption date is 17 June, and the record date is 16 June, the board confirmed.
"There are no other changes to the group's capital structure following this announcement.
"The group's £300m senior secured fixed rate notes due October 2023 and £176.6m committed revolving credit facility with its lending bank group are unchanged."
At 1521 BST, shares in Premier Foods were up 1.77% at 46p.
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