Together prices £380M PIK-toggle refinancing; terms

Together Financial Services Ltd. has wrapped its £380 million offering of six-year (non-call two-year) senior payment-in-kind, or PIK-toggle notes, which priced on Oct. 20 at par to yield 6.75%. Citi (B&D) and HSBC were global coordinators, with Barclays, Credit Suisse, Goldman Sachs and J.P. Morgan acting as joint bookrunners.

Price talk was 6.75% area, following initial price thoughts of 6.75%-7.00%.

Proceeds are earmarked to redeem the company's 8.875% PIK-toggle notes due October 2023. The size of these bonds was increased to £368.16 million, from £350 million, in April 2020 as the issuer announced that it would PIK the interest on the notes to preserve liquidity at the height of the pandemic.

Cash interest for the new offering is on a pay-if-you-can basis, with a further 75 basis points for PIK. The first and last interest payments on the notes are mandatory in cash.

Ratings for issuing entity Bracken Midco 1 are B+/B from S&P Global Ratings and Fitch.

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

Terms: