£330m Fixed Rate Notes coupon confirmed at 3.5%

RNS Number : 4793Z

Premier Foods plc

21 May 2021

 

21 May 2021

Premier Foods plc

("Premier Foods" or "the Group")

£330m Fixed Rate Notes coupon confirmed at 3.5%, raising expectations for adjusted PBT

Premier Foods is pleased to confirm that following its announcement on 19 May 2021, it has priced the offering of new £330m Fixed Rate Notes (the "Notes")¹ due October 2026 at an annual interest rate of 3.5%. This will result in a further £8m per annum reduction in the Group's financing costs and so increases its FY21/22 expectations for adjusted profit before tax.

Duncan Leggett, Chief Financial Officer, said:

"The pricing of these Notes at 3.5% further illustrates the substantial progress we have made in the last two years to strengthen our financial position. With now significantly improved leverage, our reduced levels of fixed debt and lower interest costs mean we are raising our expectations for adjusted PBT."

The proceeds of the Notes will primarily be used to redeem the £300m Fixed Rate Notes due October 2023. This redemption will take place on 16 June 2021, subject to the closing of the offering of the Notes. Meanwhile, the Group's £20m outstanding Floating Rate Notes due July 2022 will be repaid on 3 June 2021. Interest costs on the new Notes will be paid semi-annually.

~ Ends ~

For further information, please contact:

Premier Foods plc  [phone]

Duncan Leggett, Chief Financial Officer

Richard Godden, Director of Investor Relations

Headland:  

Ed Young  [phone]

Francesca Tuckett                                                                                                                                [phone]

Notes:

1.  The Notes are issued by Premier Foods Finance plc and the ISIN is XS2347091279

2.  The Notes are callable at a price of 101.75% from 15 June 2023 and at a price of 100.875% from 15 June 2024

Important Notice

THIS ANNOUNCEMENT IS FOR INFORMATIONAL PURPOSES ONLY AND DOES NOT CONSTITUTE AN OFFER OF SECURITIES FOR SALE OR A SOLICITATION OF AN OFFER TO PURCHASE ANY SECURITIES IN THE UNITED STATES (AS DEFINED IN THE U.S. SECURITIES ACT OF 1933, AS AMENDED (THE "SECURITIES ACT")), OR IN ANY OTHER JURISDICTION.

The securities referred to in this announcement have not been and will not be registered under the Securities Act, or with any securities regulatory authority of any state or other jurisdiction of the United States, and may not be offered or sold in the United States except pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the Securities Act and in compliance with any applicable securities laws of any state or other jurisdiction of the United States. No offering of the securities is being made in the United States.

The communication of this announcement and any documents or materials relating to this announcement is not being made, and such documents and/or materials have not been approved, by an authorized person for the purposes of section 21 of the Financial Services and Markets Act 2000, as amended. Accordingly, such documents and/or materials are not being distributed to, and must not be passed on to, the general public in the United Kingdom.

The information contained in this announcement does not constitute an invitation or inducement to engage in investment activity within the meaning of the United Kingdom Financial Services and Markets Act 2000. In the United Kingdom, this announcement is being distributed only to, and is directed only at (i) persons who are outside the United Kingdom, (ii) persons in the United Kingdom falling within the definition of investment professionals (as defined in Article 19(5) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 (the "Financial Promotion Order")), (iii) persons who are within Article 49(2)(a) to (d) of the Financial Promotion Order or (iv) any other persons to whom it may otherwise lawfully be made under the Financial Promotion Order (all such persons together being referred to as "relevant persons"). This announcement is directed only at relevant persons and must not be acted on or relied on by persons who are not relevant persons.

This announcement may contain "forward-looking statements" that are based on estimates and assumptions and are subject to risks and uncertainties. Forward-looking statements are all statements other than statements of historical fact or statements in the present tense, and can be identified by words such as "targets", "aims", "aspires", "assumes", "believes", "estimates", "anticipates", "expects", "intends", "hopes", "may", "would", "should", "could", "will", "plans", "predicts" and "potential", as well as the negatives of these terms and other words of similar meaning.  Any forward-looking statements in this announcement are made based upon Premier Foods' estimates, expectations and beliefs concerning future events affecting Premier Foods and subject to a number of known and unknown risks and uncertainties. Such forward-looking statements are based on numerous assumptions regarding Premier Foods' present and future business strategies and the environment in which it will operate, which may prove not to be accurate. Premier Foods cautions that these forward-looking statements are not guarantees and that actual results could differ materially from those expressed or implied in these forward-looking statements.  Undue reliance should, therefore, not be placed on such forward-looking statements. Any forward-looking statements contained in this announcement apply only as at the date of this announcement and are not intended to give any assurance as to future results.  Premier Foods will update this announcement as required by applicable law, including the Prospectus Rules, the Listing Rules, the Disclosure and Transparency Rules, London Stock Exchange and any other applicable law or regulations, but otherwise expressly disclaims any obligation or undertaking to update or revise any forward-looking statement, whether as a result of new information, future developments or otherwise.

 

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