IG Group Holdings plc today revealed the successfuly completing a comprehensive debt refinancing exercise and implemented a long term funding structure.
The company detailed that this move will provide IG with additional, significant levels of liquidity, to further support the Group’s strategic growth ambitions. It will also lengthen the maturity of the debt facilities boosting IG’s financial flexibility and deliver material headroom within its total facilities.
IG Group noted that the refinancing involved issuing a £300 million in senior notes bonds that are due in 2028. The bonds were priced on Thursday and were rated BBB by Fitch Ratings. As a result, the company saw a strong investor demand.
Additionally, the company committed £300 million revolving credit facility (RCF) with an initial maturity of three years. IG has the ability to request a further increase in the RCF size to £400 million, as well as two maturity extensions of up to one year each.
The refinancing also involved repayment and cancellation of the IG’s existing £125 million RCFs and £250 million term loan facilities.
As a result of the debt refinancing exercise, total available credit facilities have increased from £375 million to £600 million with the potential to rise to £700m, if the new RCF is increased in size.
The announcement also noted that the joint Bookrunners on the bond issue inclde Barclays, HSBC, Lloyds and NatWest. They also provided the new revolving credit facility. Rothschild & Co. advised the group on this.
Charlie Rozes, Chief Financial Officer, IG Group said:
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. 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.
IG Group recently reported £221.7 million in the first quarter of the financial year 2022.
