The additional notes were issued at a price of 108.5% returning a yield to maturity of 6.892% and a yield to 15 September 2017 of 5.883%. It follows the existing £200m issue undertaken in September last year which saw existing notes due in 2018 and priced at 9.75%.
The additional funding will be used to prepay all amounts outstanding under Jerrold’s revolving credit facility and to fund loans to UK based SMEs and home-owners.
Prior to the transaction, Fitch Ratings upgraded Jerrold's long-term issuer default rating to BB- from B+ with Standard & Poor’s having also upgraded Jerrold to BB- in December 2014.
In the period prior to the offering of additional notes, the existing notes have traded significantly above par.
Gary Beckett, group chief financial officer of Jerrold, said: “The transaction secures funding which will enable us to take advantage of the opportunities we see in the market and enhance the support we can offer our customers and business partners.
“Alongside our successful £675m securitisation, which now benefits from investment grade ratings, this is an important cornerstone of financing a loan book in excess of £1.3bn.”
Credit Suisse Securities (Europe) Limited, Lloyds Bank plc, The Royal Bank of Scotland plc, HSBC Bank plc, Jefferies International Limited and Natixis advised Jerrold on the transaction.
