US Private Placement debt issuance

RNS Number : 5730B

Serco Group PLC

09 October 2020

 

New US Private Placement debt issued

9 October 2020

Serco Group plc

LEI: 549300PT2CIHYN5GWJ21

Serco Group plc ('Serco' or 'the Group') has issued $200m (£154m) of US Private Placement loan notes.  The notes have maturities of 5, 7, 10 and 12 years, with a weighted average maturity of nearly eight years.  The financing has been completed in advance of existing US Private Placement debt maturing in 2021.  The average interest rate on the new loan notes is fixed at 3.6%, which compares to a blended rate of 5.3% for the existing notes.

A strong capital structure is essential in providing a base for the ongoing execution of our strategy.  We are therefore pleased to be able to secure long term debt at attractive interest rates.  This is the first time Serco has accessed the US Private Placement market in more than seven years and was possible due to our low financial leverage and resilient business model.

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For further information please contact:

Paul Checketts, Head of Investor Relations, tel: [phone] or email: [e-mail]

Marcus De Ville, Head of Media Relations, tel: [phone] or email: [e-mail]

About Serco

Serco is a leading provider of public services.  Our customers are governments or others operating in the public sector.  We gain scale, expertise and diversification by operating internationally across five sectors and four geographies: Defence, Justice & Immigration, Transport, Health and Citizen Services, delivered in UK & Europe, North America, Asia Pacific and the Middle East.

More information can be found at www.serco.com

Important Notices

This announcement does not constitute an offer of securities for sale in the United States of America.  The notes have not been and will not be registered under the U.S. Securities Act of 1933, as amended (the " U.S. Securities Act ") and the notes may not be offered or sold in the United States of America absent registration or an exemption from registration as provided in the U.S. Securities Act, and the rules and regulations thereunder.  No public offering of notes is being or will be made in the United States of America.

The information contained herein shall not constitute or form part of any offer to sell or solicitation of an offer to buy, nor shall there be any sale of the notes in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration, exemption from registration or qualification under the securities laws of any such jurisdiction.

This communication is being distributed to, and is directed only at, persons in the United Kingdom in circumstances where section 21(1) of FSMA does not apply.

Forward looking statements

This announcement contains statements which are, or may be deemed to be, "forward looking statements" which are prospective in nature.  All statements other than statements of historical fact are forward looking statements.  Generally, words such as "expect", "anticipate", "may", "could", "should", "will", "aspire", "aim", "plan", "target", "goal", "ambition", "intend" and similar expressions identify forward looking-statements.  By their nature, these forward looking statements are subject to a number of known and unknown risks, uncertainties and contingencies, and actual results and events could differ materially from those currently being anticipated as reflected in such statements.  Factors which may cause future outcomes to differ from those foreseen or implied in forward looking statements include, but are not limited to: general economic conditions and business conditions in Serco's markets; contracts awarded to Serco; customers' acceptance of Serco's products and services; operational problems; the actions of competitors, trading partners, creditors, rating agencies and others; the success or otherwise of partnering; changes in laws and governmental regulations; regulatory or legal actions, including the types of enforcement action pursued and the nature of remedies sought or imposed; the receipt of relevant third party and/or regulatory approvals; exchange rate fluctuations; the development and use of new technology; changes in public expectations and other changes to business conditions; wars and acts of terrorism; cyber-attacks; and pandemics, epidemics or natural disasters.  Many of these factors are beyond Serco's control or influence.  These forward looking statements speak only as of the date of this announcement and have not been audited or otherwise independently verified.  Past performance should not be taken as an indication or guarantee of future results and no representation or warranty, express or implied, is made regarding future performance.  Except as required by any applicable law or regulation, Serco expressly disclaims any obligation or undertaking to release publicly any updates or revisions to any forward looking statements contained in this announcement to reflect any change in Serco's expectations or any change in events, conditions or circumstances on which any such statement is based after the date of this announcement, or to keep current any other information contained in this announcement.  Accordingly, undue reliance should not be placed on the forward looking statements.

 

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