Pricing of Senior Secured Notes

RNS Number : 7092R

Victoria PLC

10 March 2021

 

NOT FOR DISTRIBUTION TO ANY PERSON LOCATED OR RESIDENT IN ANY JURISDICTION WHERE IT IS UNLAWFUL TO DISTRIBUTE THIS ANNOUNCEMENT. NOT FOR PUBLICATION IN THE UNITED STATES. THIS ANNOUNCEMENT IS FOR INFORMATION PURPOSES ONLY AND IS NOT AN OFFER TO PURCHASE OR A SOLICITATION OF AN OFFER TO SELL ANY NOTES.

10 March 2021

Victoria PLC
("Victoria", the "Company", or the "Group")

Announcement of pricing of €250 million senior secured notes due 2028

Refinancing of Existing Debt at a Reduced Coupon

Victoria PLC (LSE: VCP)  is pleased to announce that it has successfully priced an offering of €250 million in aggregate principal amount of 3.75% fixed rate senior secured notes, due 2028 (the "Notes"). The offer, which was announced this morning, is leverage neutral (subject to transaction costs and redemption premia).

The Board of Victoria is delighted with this outcome, with pricing only 0.125% above the recently issued 2026 notes, despite the longer, 7-year, maturity.

Net proceeds from the issuance of the Notes will be used solely to refinance, in full, the remainder of the Group's outstanding 5.25% senior notes due 2024 (the "2024 Notes") to further improve the maturity profile and cost of the Group's debt. On completion of the refinancing, the Group's senior secured notes will have a weighted average coupon of 3.67%, which represents a full 1.58% in savings compared to the 2024 Notes.

The Notes will be issued at par and will be the general, senior obligations of the Company and will be guaranteed by certain of the Company's subsidiaries. Interest on the Notes will be payable semi-annually in arrears. The offering of the Notes is expected to close and the Notes are expected to be issued on or about 19 March 2021, subject to customary conditions precedent for similar transactions.

Geoff Wilding, Executive Chairman of Victoria, commented:

"We are delighted with the level of support shown again from bond investors, which has enabled the entire €250 million issue to be placed in less than a day. Apart from the 1.58% average coupon reduction, which saves the Group c.£7 million of annual interest cost versus the original 2024 notes, completion of this refinancing means that the earliest of the Group's senior debt will not fall due until August 2026, with the notes issued today not due until March 2028. It is the Board's view that these long-dated bonds, in conjunction with the Group's strong cash generation, places Victoria in a very robust financial position.

Finally, the Board advises that trading continues to be resilient since the start of the calendar year despite the UK lockdowns, and looks forward to updating shareholders in due course."

This announcement does not constitute an offer to sell or the solicitation of an offer to buy the Notes or any other security and shall not constitute an offer, solicitation or sale in the United States or in any jurisdiction in which, or to any persons to whom, such offering, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any jurisdiction.

The Notes and the related guarantees have not been, and will not be, registered under the U.S. Securities Act of 1933, as amended (the "Securities Act") and may not be offered or sold within the United States or to, or for the account or benefit of, U.S. persons except pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the Securities Act.

This announcement may include projections and other "forward-looking" statements within the meaning of applicable securities laws. Any such projections or statements reflect the current views of the Company about future events and financial performance. The use of any of the words "expect," "anticipate," "continue," "will," "project," "should," "believe," "plans," "intends" and similar expressions are intended to identify forward-looking information or statements. Although the Company believes that the expectations and assumptions on which such forward-looking statements and information are reasonable, undue reliance should not be placed on the forward-looking statements and information because the Company can give no assurance that such statements and information will prove to be correct. Since forward-looking statements and information address future events and conditions, by their very nature they involve inherent risks and uncertainties.

The forward-looking statements and information contained in this announcement are made as of the date hereof and the Company undertakes no obligation to update publicly or revise any forward-looking statements or information, whether as a result of new information future events or otherwise, unless so required by applicable securities laws. Within the United Kingdom, this announcement is directed only at persons having professional experience in matters relating to investments who fall within the definition of "investment professionals" in Article 19(5) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 ("relevant persons"). The investment or investment activity to which this announcement relates is only available to and will only be engaged in with relevant persons and persons who receive this announcement who are not relevant persons should not rely or act upon it.

Manufacturer target market (MIFID II product governance; UK MiFIR product governance) is eligible counterparties and professional clients only (all distribution channels). No PRIIPs or UK PRIIPs key information document (KID) has been prepared as not available to retail investors in EEA or the United Kingdom, respectively.

FOR FURTHER INFORMATION CONTACT:

Victoria PLC ([phone]) Geoff Wilding Philippe Hamers Michael Scott	N+1 Singer (Nominated Adviser and Joint Broker) ([phone]) Rick Thompson Phil Davies Alex Bond
Berenberg (Joint Broker) ([phone]) Ben Wright Mark Whitmore Tejas Padalkar	Peel Hunt (Joint Broker) ([phone]) Adrian Trimmings Andrew Clark
Buchanan Communications (Financial PR) ([phone]) Charles Ryland Chris Lane Tilly Abraham

 

END

 

 

MSCSSAFWUEFSEID