Partial redemption of Senior Secured Notes

RNS Number : 8361N

Premier Foods plc

26 May 2020

 

26 May 2020

Premier Foods plc

("Premier Foods" or "the Group" or "the Company")

Partial redemption of Senior Secured Floating Rate Notes due July 2022 (the "Notes")¹

The Group announces that, it has provided a certificate to HSBC Corporate Trustee Company (UK) Limited, as Trustee, and HSBC Bank plc, as paying agent, for the Group's Senior Secured 5.0% + LIBOR floating rate Notes due July 2022 (the "Notes"), notifying of its intention to redeem £80 million of the £210 million outstanding. This is in line with requirements of the Indenture of the Notes².

This partial redemption signifies further evidence of the Group's increasing momentum and is clear demonstration of its cash generating characteristics. Following the completion of this partial redemption of Notes, the Group expects to save over £4m per annum 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.

Further to the certificate, the Group hereby confirms that, pursuant to the terms of the Indenture², £80 million of the Notes will be redeemed at par, plus accrued and unpaid interest up to, but excluding, the redemption date³. The redemption date is 17 June 2020 and the record date is 16 June 2020.

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.

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For further information, please contact:

Premier Foods plc  [phone]

Duncan Leggett, Chief Financial Officer

Richard Godden, Director of Investor Relations & Treasury

Headland:  

Ed Young  [phone]

Francesca Tuckett                                                                                                                               [phone]

Notes:

1.  The ISIN for the Notes are: 144A: XS1619820597 and Reg S: XS1619820324.

2.  Section 3.07 (c) (Optional redemption) of the Indenture relating to the Notes.

3.  Accrued unpaid interest amounts are calculated as 5.0% plus 3 month LIBOR for 63 days.  There are no Additional Amounts (as defined in the Indenture) payable.

 

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