Partial redemption of Senior Secured Notes

RNS Number : 1596B

Premier Foods plc

06 October 2020

 

6 October 2020

Premier Foods plc

("Premier Foods" or "the Group")

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 Notes due July 2022, notifying of its intention to redeem £40 million of the £130 million outstanding. This is in line with requirements of the Indenture of the Notes² and is further to the £80 million redemption completed in June this year.

This partial redemption reflects the Group's strong trading momentum during the first half of this financial year together with further progress on reducing Net debt. As the Group continues on its path to deleverage the business, its intention is to utilise future free cash flow to reduce its cost of financing. Following the completion of this partial redemption of Notes, the Group expects to save approximately £2m per annum in interest costs.

Further to the certificate, the Group hereby confirms that, pursuant to the terms of the Indenture², £40 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 1 December 2020 and the record date is 30 November 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 its £176.6m committed Revolving Credit Facility with its lending bank group, which was undrawn at the end of September, are unchanged.

Half year results announcement

The Group will release its Half year results for the 26 weeks ended 26 September 2020 on 10 November 2020; further details will be provided in due course.

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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 the period to the redemption date.  There are no Additional Amounts (as defined in the Indenture) payable.

 

END

 

 

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