Together Financial Services has successfully completed the issuance of £500 million in senior secured notes due in 2031, further strengthening its funding base and underlining investor confidence in the lender’s long-term strategy.
The privately owned non-bank lender, through its wholly owned subsidiary Jerrold FinCo plc, confirmed the notes carry a 7½% coupon and were significantly oversubscribed. The proceeds, combined with cash on balance sheet, will be used to redeem the firm’s existing £500 million notes maturing in 2027 and to cover associated fees and expenses.
Richard Rowntree, group chief executive officer of Together, said: “We are delighted to announce the successful completion of our £500 million bond offering. The issuance received strong support from our investors, once again underlining the strength of our model, the quality of our loan book and ongoing confidence in our long-term growth strategy.”
The transaction marks the latest in a flurry of capital activity by Together this year, with £3 billion raised or refinanced across six separate deals since January. Gary Beckett, group managing director and chief treasury officer, said the firm continues to strengthen and diversify its funding programme. “This successful issuance, which supports the refinancing of our 2027 bonds, was significantly over-subscribed, evidencing continued investor support for Together,” he said.
The 2031 notes are guaranteed on a senior secured basis by the parent company and all its material subsidiaries, excluding securitisation vehicles and certain non-material entities. Security comprises first-priority fixed and floating charges over shares in the issuer and guarantors, substantially all current and future assets (excluding those sold to securitisations), and related proceeds.
Certain liabilities under Together’s revolving credit facility and hedging arrangements will retain priority over proceeds from enforcement in a distressed scenario, in accordance with the firm’s intercreditor arrangements. The new notes will rank pari passu with the issuer’s existing £450 million 2030 notes and other senior secured debt.
Application will be made for the new bonds to be listed on The International Stock Exchange. However, Together noted that there can be no assurance the listing will be approved or maintained.
Citi and Goldman Sachs acted as joint global coordinators and physical bookrunners, with HSBC, Lloyds and NatWest joining as joint bookrunners.
