Angel Issues Corporate Bonds
On 13 July 2010, Angel successfully issued two sterling bonds with a total value of £800 million:
- £300 million 6.250% coupon 10 years bullet maturity; and
- £500 million 6.875% coupon 25 years amortising maturity
The issuance was significantly oversubscribed at almost 2 times by a strong investor base. The proceeds of this issuance together with cash in the company will be used to prepay in full a £813 million tranche of senior term loans which Angel entered into at time of acquisition in 2008. The original maturity of the debt being repaid was June 2011.
The key benefit of the issuance is to reduce refinancing risk by proactively prepaying a tranche of senior term loan maturing in June 2011 and extending the maturity profile to 2020 and beyond, matching the long term nature of Angel’s assets.
The structure put in place and the reduction in refinancing risk positively contributed to maintaining a BBB rating by Standard & Poor’s.
It achieves one of our key strategic initiatives for the investment and was made possible by close teamwork between management and the Arcus team over the past several months.
DISCLAIMER
This information note (“Note”) has been prepared by Arcus European Investment Manager LLP (“Arcus”) for use solely for information purposes. Arcus makes no representations or warranties to the accuracy or completeness of any past, simulated or estimated performance results contain herein, and further nothing contained herein shall be relied upon as a promise by, or representation by, Arcus whether as to past or future performance results.