Together releases IPTs for £450M bond offering

Together, through issuing entity Jerrold Finco PLC, has released initial price thoughts on its £450 million, six-year (non-call two) secured bond offering at 5.50%-5.75%. A telephonic roadshow will continue today. Citi (B&D) and Goldman Sachs are global coordinators and joint bookrunners. Barclays, Credit Suisse, HSBC and J.P. Morgan are joint bookrunners.

Proceeds from the new notes will be used to repay the borrower's £350 million of 6.125% notes due 2024 that are callable at 101.52, with the call price having just stepped down from 103.06. Proceeds will also reduce the drawn balance under its CABS Securitization by £90.2 million.

Banks are guiding investors to expected corporate and issue ratings of BB-/BB-.

The company's other outstanding bonds are the £435 million of 4.875% notes due January 2026, which closed on Jan. 12 at 99 yielding 5.1%, according to S&P Global Market Intelligence. Those bonds were issued in January 2020.

Then in April 2020, the company announced it was to PIK the interest on its £350 million (PIK-toggle) notes due 2023 for the payment due April 15, 2020, in order to preserve liquidity during the early phase of the COVID-19 crisis. The interest due was £18.16 million, and following this, the size of the bond rose to £368.16 million.

Together is a specialist U.K. mortgage loan provider established in 1974 and operated by Jerrold.