IG Group completes debt financing and reveals new funding structure
The refinancing initiative included the issuance of £300m in senior unsecured bonds that are due in 2028 and carry a 3.125% interest rate.
This, IG Group said, attracted strong investor demand, and as such allowed the business to tighten pricing and increase its size from initial indications.
IG Group also secured a new £300m committed revolving credit facility (RCF), with an initial maturity of three years. This also included the option to extend to £400m and to request two maturity extensions of one year each.
In addition, IG Group was able to repay and cancel its existing £125m RCFs and £250m term loan facilities.
The initiative, IG Group said, increased its total available credit facilities from £375m to £600m, with the potential to rise again to £700m.
“This comprehensive refinancing puts in place a long-term funding structure that provides the Group with a balanced mix of senior debt arrangements with attractive maturities,” IG Group chief financial officer Charlie Rozes said.
“This will enable the board to continue to pursue its value-enhancing strategic objectives with confidence, while at the same time managing our risks by strengthening our capital base and liquidity position.
“We welcome our bondholders as new stakeholders in the business and are very grateful to our relationship banks for their continued support.”