International Personal Finance Prices EUR225M Bond Issue >IPF.LN

30th Jul 2010 11:06

LONDON (Dow Jones)--International Personal Finance PLC (IPF.LN), a provider of financial services and products, said Friday that as part of its strategy to diversify its sources of funding and extend its debt maturity profile, it has priced EUR225 million 5 year bonds at a fixed coupon of 11.5%. MAIN FACTS: -The proceeds of the issue will be used to pay down a portion of existing bank borrowings. -As a result of this transaction Group interest costs are expected to increase from just over 5% of revenue to 7.5% for 2011. -Interest rate swaps relating to these bank borrowings will be closed out, which will result in a one-off cost of GBP6 million which will be treated as an exceptional item in the reporting of the Group results. -Book-runners were Citigroup Global Markets Ltd. and HSBC Bank PLC. -Shares at 1005 GMT up 0.5 pence, or 0.2%, at 236.4 pence valuing the company at GBP608.06 million. -By Ian Walker, Dow Jones Newswires; 44-20-7842-9296; [email protected] (END) Dow Jones Newswires July 30, 2010 06:06 ET (10:06 GMT)