Together upsizes bond offering by £50M, to £500M

Together Financial Services Ltd., through issuing entity Jerrold Finco PLC, has upsized its six-year (non-call two) secured bond offering by £50 million to £500 million and set the final yield at 5.25%. Price guidance was set at 5.25%-5.50% and initial price thoughts were 5.50%-5.75%.

Books now close today at 5:45 p.m. GMT for pricing thereafter via Citi (B&D) and Goldman Sachs as 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 the company's CABS Securitization by £90.2 million. The additional proceeds are for general corporate purposes.

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 Jan. 12 at 99 yielding 5.1%, according to S&P Global Market Intelligence. Those bonds were issued in January 2020.

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.