RNS Number : 1896Y
02 July 2008
2 July 2008
Issue of bonds and confirmation of corporate borrowing structure
ITV plc ('ITV') announces a £110 million Eurosterling issue. The bond (the '2013 Bond') will be issued pursuant to ITV's £1.5 billion Euro Medium Term Note Programme (the 'Programme'), which is rated BBB- and Baa3 by Standard & Poor's and Moody's, respectively. The bond will have a maturity date of 20 March, 2013, will be issued in floating rate note form and will pay a coupon equivalent to 3 month Sterling LIBOR plus 270 basis points. The expected settlement date for the issuance of the 2013 Bond is 4 July, 2008.
Since the creation of ITV in early 2004, the Company has issued three bonds pursuant to the Programme details of which are set out below (the 'ITV Bonds'). Each of the ITV Bonds benefits from an unconditional and, save as provided for in the terms and conditions of the Programme, irrevocable guarantee from Carlton Communications Limited ('Carlton'), a wholly-owned subsidiary of ITV.
Under the terms and conditions constituting each of the ITV Bonds, in certain circumstances ITV and Carlton have the option to request the Trustee under the Programme to release Carlton from its obligations as Guarantor. The 2013 Bond does not contain such a guarantee release provision. ITV has today announced that, with a view to maintaining the pari passu ranking of the ITV Bonds and the 2013 Bond it intends to refrain from requesting such a release until the earlier of (i) 20 March, 2013 and (ii) the date on which the 2013 Bond is redeemed in its entirety.
John Cresswell, Chief Operating Officer and Finance Director of ITV, said:
'We are pleased with this new issue of debt. We also have available a further £200m of 5 year committed bi-lateral financing, none of which includes financial covenants or credit rating triggers. Together these provide the medium term liquidity to support our business plan.'
The ITV Bonds*
€500 million 4.75% Bonds due 2011
£325 million 5.375% Bonds due 2015
£250 million 6.125% Bonds due 2017
* In addition ITV has a £250m 5.625% Bond due March 2, 2009.
The bonds referred to herein have not been, and will not be, registered under the U.S. Securities Act of 1933 (the 'Securities Act'), and may not be offered or sold in the United States, except pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the Securities Act. No public offer of the bonds is being made in the United States, and the information contained herein does not constitute an offering of securities for sale in the United States.
For further enquiries please contact:
Tel: 020 7156 6000
Equity investor enquiries
Pippa Strong - Head of Investor Relations
Debt investor enquiries
Charles van der Welle - Director of Treasury
Tel: 020 7353 4200
This information is provided by RNS
The company news service from the London Stock Exchange