RLPC-Experian to draw down $2.5 bln loan to repay bonds
LONDON, Dec 5 (Reuters) - Credit checking firm Experian (EXPN.L) said on Friday that it will use an existing $2.5 billion revolving credit to buy back bonds as it seeks to manage its debt maturity profile.
Experian Finance plc is looking to buy back outstanding bonds worth 308 million pounds with a coupon of 6.375 percent that are due to mature in July 2009.
The move will save Experian more than 50 basis points per annum, a company spokesman said. Redemption is at par with no call penalty, a banker close to the deal said.
The bond price will be 100.80 based on a seven-month LIBOR rate of 3.8725 percent, Experian said, adding it would also pay accrued interest on the bonds until settlement.
Experian's existing $2.5 billion revolving credit loan is due to mature in 2012. At the end of November, $1.2 billion of the facility was available after $1.3 billion was drawn.
The company has already cancelled 42 million pounds of the bonds in private market transactions between April and August this year.
Experian is rated BBB+ by Standard & Poor's and Baa1 by Moody's.
Experian tapped the syndicated loan market in 2006, when it self-arranged the $2.5 billion revolving credit with a syndicate of 15 banks.
(Reporting by Zaida Espana; Additional reporting by Natalie Harrison)
