National Express launches £250m cash call
Birmingham travel company the National Express Group has launched a £225m ten-year Sterling bond issue, which it says will help pay back its bank debt. The company expects the bond to be issued on 17 June 2010 with an annual coupon of 6.625 per cent and a bullet repayment on 17 June 2020. The news comes afer National Express issued a £350m seven-year bond in January 2010. The company says the new bond will further extend the average maturity of the group's debt, reduce its reliance on bank financing and diversify and strengthen its overall funding structure. Jez Maiden, group finance director, said: "The successful launch of our ten-year bond has allowed us to refinance the majority of our 2011 bank debt ahead of schedule. Leading bond investors have continued to be strongly supportive of National Express, despite uncertain credit markets, and we have the long-term capital structure in place to deliver opportunities across the group."
