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Silver Chef to Redeem Notes

Categories: Bonds

On 10 August 2015 Silver Chef Limited announced to the ASX the signing of a new $300m syndicated banking facility provided by ANZ, Bank of Queensland, CBA, HSBC and Westpac, which will provide a staggered debt maturity profile over 3 and 5 years. At the same time, the company announced the early redemption of its FIIG originated bond (8.50% Fixed Rate Notes) on the first optional call date (14 September 2015) at 103% of face value. While the early redemption of the notes is a surprise it confirms our positive view on the company. The new bank facility will enable the company to lower its cost of funding and stabilise its capital structure over a medium-term period.