J. Saville Gordon Group announced yesterday that it is issuing a £50m First Mortgage Debenture Stock 2023 in a bid to restructure the group’s finances.
J.Saville Gordon’s finance director, Terry Hutchinson told EGi that the debenture stock was a way for the company to raise “cheap money” as the group’s bank loan facilities agreements will be redeemable in 2000.
The Stock will bear interest payable half yearly in arrears on 5th January and 5th July and will be issued at a price to be determined at or before 3.00pm today. The gross redemption yield at the Issue Price will represent a margin of 130 basis points over the yield on the 8% Treasury Stock 2021.
Meanwhile Hutchinson reaffirmed J Saville Gordon’s intention to sell its £60m retail holdings and invest the proceeds in industrial holdings.
EGi News 28/11/97
