The electronics retailer Dixons is seeking to retire some of its existing debt prior to issuing some new loan notes..
The group has offered to buy back up to £130m pounds in outstanding debt. Of the total, £80m would come from the company's outstanding £300m 2012 bond issue which currently yields 6.125%. A further £50m would go on the 8.75% bonds due 2015.
The group is offering to pay £4 above the £1,000 redeemption value of the 6.12% guaranteed bonds due to expire this year, and £50 above the £1,000 redemption price of the 8.75% guaranteed notes due to expire in 2015.
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
The 2012 notes will be purchased using Dixons' existing cash resources, whereas the 2015 notes will be bought back using money raised through the issue of new sterling-denominated fixed rate guaranteed notes with an expected maturity date of 2017.
Bond holders have been invited to tender their holdings for sale, with the proviso that applications may be pared on a pro rata basis if there is surplus demand. Dixons also said it would not go through with the repurchase of the 2015 notes unless a minimum of £50,000 of notes are tendered for buy-back.
JH
-
FTSE 100 hits record highs – why is it rising and will we see more gains?Advice UK equities have been described as unloved for a long time but as the FTSE 100 hits new highs, we explain if now is the time to buy British.
-
How to invest in copperIt may be time to invest in copper as the red metal appears poised for a big jump. Dominic Frisby looks at what should investors should buy
