Launch of Eurobond Issue

RNS Number : 2860T

Shanks Group PLC

24 September 2010

 



THIS ANNOUNCEMENT IS NOT FOR PUBLICATION, DISTRIBUTION OR RELEASE, DIRECTLY OR INDIRECTLY, IN THE UNITED STATES, AUSTRALIA, CANADA, JAPAN OR IN ANY OTHER JURISDICTION IN WHICH OFFERS OR SALES WOULD BE PROHIBITED BY APPLICABLE LAW 

THIS ANNOUNCEMENT IS NEITHER AN OFFER TO SELL NOR A SOLICITATION OF AN OFFER TO BUY ANY OF THE EUROBONDS REFERRED TO HEREIN AND SHALL NOT CONSTITUTE AN OFFER, SOLICITATION NOR SALE IN ANY JURISDICTION IN WHICH SUCH OFFER, SOLICITATION OR SALE IS UNLAWFUL, INCLUDING BUT NOT LIMITED TO THE UNITED STATES, AUSTRALIA, CANADA OR JAPAN.

24 September 2010

SHANKS GROUP PLC LAUNCHES BOND ISSUE TO RETAIL INVESTORS

IN BELGIUM AND THE GRAND DUCHY OF LUXEMBOURG

Shanks Group plc, Europe's largest listed independent waste management business, today launches  five year Eurobonds` to raise a minimum of €50m, becoming, to its knowledge, the first UK company to offer a bond aimed at retail investors in Belgium and the Grand Duchy of Luxembourg.

The issue begins the process of extending the maturity of the Group's funding. Shanks core net debt of £196m at 31 July 2010 (31 March 2010: £186m), is predominantly in Euro and comprises €18m of Private Placement Notes due 2011, €18m of Private Placement notes due 2013 and drawings on a €302m bank facility which expires in April 2012. The net proceeds of the bond issue will be used to repay bank debt.

The bond issue is to retail investors in Belgium and the Grand Duchy of Luxembourg and carries a gross coupon of 5.00% payable annually for a period of five years from 22 October 2010 (the issue date). The redemption on maturity, expected to be 22 October 2015, will be made at 100% of the nominal amount of the bonds. Based on the issue price set at 101.875%, the annual gross yield is 4.572%. The bonds are available in denominations of €1,000, and will be listed on the main market of the London Stock Exchange. The joint lead managers for the transaction are BNP Paribas Fortis and KBC Bank.

The subscription period will run from 28 September at 9am CET to 20 October 2010 at 4pm CET, subject to early closing.

To view the Prospectus dated 24 September 2010 (including in particular the risk factors) please paste the following URL into the address bar of your browser:

http://www.rns-pdf.londonstockexchange.com/rns/2806T_1-2010-9-24.pdf

A copy of the Prospectus shall be available for inspection at the National Storage Mechanism (www.hemscott.com/nsm.do) shortly.

Potential investors in the Eurobonds must themselves assess, with their own advisors if necessary, whether the Eurobonds are suitable for them, considering their personal income and financial situation. In case of any doubt about the risk involved in purchasing the Eurobonds, investors should abstain from investing in the Eurobonds. The holder of the Eurobond bears the risk of losing some or all of his invested capital in any  case of default by the issuer and the guarantors. Other risk factors are described in the Prospectus.

Tom Drury, Group Chief Executive of Shanks Group plc, commented:

"This innovative offering, which we believe to be the first by a UK company in Belgium, emphasises the Group's presence there and provides flexible longer term funding in the currency that we require.

I am confident that the offer will appeal to retail investors, with the bond supported by our strong business with a record of successful innovation in the waste markets of The Netherlands, Belgium, UK and Canada."

Enquiries:

Tulchan Communications                               [phone]

John Sunnucks/David Allchurch

Disclaimer - Intended Addressees

Please note that the information contained in the Prospectus may be addressed to and/or targeted at persons who are resident of particular countries (specified in the Prospectus) only and is not intended for use and should not be relied upon by any person outside these countries and/or to whom the offer contained in the Prospectus is not addressed. Prior to relying on the information contained in the Prospectus you must ascertain from the Prospectus whether or not you are part of the intended addressees of the information contained therein.

Your right to access this service is conditional upon complying with the above requirement.

THE EUROBONDS REFERRED TO IN THIS DOCUMENT HAVE NOT BEEN, AND WILL NOT BE, REGISTERED UNDER THE US SECURITIES ACT OF 1933 (THE SECURITIES ACT) OR UNDER THE SECURITIES LEGISLATION OF ANY STATE OF THE UNITED STATES, AND MAY NOT BE OFFERED OR SOLD IN THE UNITED STATES OTHER THAN PURSUANT TO AN EXEMPTION FROM, OR IN A TRANSACTION NOT SUBJECT TO, THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT. THE ISSUER OF THE BONDS DOES NOT INTEND TO MAKE A PUBLIC OFFER OF SECURITIES IN THE UNITED STATES OR TO REGISTER ANY SECURITIES UNDER THE SECURITIES ACT.

 

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