William Hill to Raise £300m in Bonds Issue9th November 2009 9:15 am GMT
Shares in William Hill plc are continuing to climb today after the company announced Friday that it was launching a £300 million corporate bond to help pay down debts.
The issue of the seven-year bonds is part of the company's previously stated strategy to diversify its debt facilities and maturities following the £350 million refinancing of its bank debt earlier this year.
William Hill had been facing debt repayments of £300 million in 2011 which it can now defer to November 2016 when the bonds mature with a yield of 7.25%. William Hill's remaining £538.5 million debt matures in 2012.
Following the issue of the Bonds, William Hill expects to incur an exceptional charge of between £16-19 million this year as a result of closing a portion of its hedging arrangements.
Shares in William Hill plc (Co. Profile) (LSE:WMH) are trading up 1.5% this morning at 182.00 pence per share, having climbed 6 pence per share on Friday.