IG Group successfully completes comprehensive debt refinancing exercise

Electronic trading major IG Group Holdings plc (LON:IGG) today announced the successful completion of a comprehensive debt refinancing exercise and implementation of a long term funding structure.

These important steps are set to:

• give IG additional, significant levels of liquidity, to further support the Group’s strategic growth ambitions;
• lengthen the maturity of the debt facilities, enhancing IG’s financial flexibility; and
• provide material headroom within IG’s total facilities.

The refinancing involves:

• the issue of £300,000,000, 3.125% senior unsecured bonds due 2028, expected BBB- by Fitch Ratings, which were priced yesterday. This inaugural issuance for IG attracted strong investor demand, enabling it to tighten pricing and increase its size from initial indications.
• a new £300,000,000 committed revolving credit facility (RCF), with an initial maturity of three years. Importantly, the company has the ability to request an increase in the RCF size to £400,000,000, and to request two maturity extensions of one year each, all subject to bank approval.
• the repayment and cancellation of the company’s existing £125m RCFs and £250m term loan facilities.

Following this exercise, total available credit facilities have risen from £375m to £600m with the potential to rise to £700m, if the new RCF is increased in size.

Joint Bookrunners on the bond issue were Barclays, HSBC, Lloyds and NatWest, which also provided the new revolving credit facility. IG Group was advised by Rothschild & Co.

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”.