Signet to prepay private placement notes

SIGNET_ernestjonesshop.jpg

Jewellery retail group to reduce interest expenses on notes.

Signet has announced that it intends to prepay its private placement notes and so reduce its interest expenses.

The jewellery retail group will prepay the US$229.1 million (£144.3 million) aggregate principal amount of private placement notes outstanding under its US Private Placement Note Term Series Agreement.

The notes will be paid by November 26 and will result in a reduction in interest expenses of US$101.7 million (£64 million) over the remaining term of the notes.

Story continues below
Advertisement

The payment will be reflected in Signet’s results for the fourth quarter of its 2011 fiscal year and is anticipated to have a net 32c (20p) adverse impact on diluted earnings per share.

In addition, Signet and its lenders have amended their US$300 million (£188.9 million) unsecured multi-currency five-year revolving credit facility agreement.

Signet chief financial officer Ron Ristau said: “There is a clear benefit to shareholders from prepaying the notes and amending the facility agreement. As a result, we reduce interest expense and further improve our financial and operating flexibility. These actions again demonstrate the competitive advantages of our strong balance sheet and significant cash flow generation.”

Authors

*

Related posts

Top