IG Group has reportedly completed a comprehensive refinancing of its debt, involving the issue of £300 million in senior notes bonds that will be due in 2028, in order to implement a long-term funding structure.
The bonds which were rated BBB by Fitch Ratings were priced on Thursday and witnessed strong demand from investors. IG committed the £300 million revolving credit facility (RCF) with an initial maturity of 3 years. Moreover, the RCF size can be increased to £400 million, and the maturity can be extended twice for up to one year each at the request of the group. The refinancing also involved repayment of IG's existing £125m RCFs and cancellation of its £250m term loan facilities.
After the completion of the refinancing, the total available credit facilities of IG Group jumped from £375 million to £600 million, and the figure can be further increased to £700 million if it extends the RCF.
"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," Charlie Rozes, Chief Financial Officer of IG Group, said in a statement.
"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."