Helical Bar HB20 early redemption

[Shinyuk]

FYI- price has gone up 4-5 points
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HELICAL TO REDUCE DEBT AND LOWER FINANCE COSTS USING PROCEEDS OF RECENT SALES

Helical has today announced its intention to redeem its £80.0m 6.00 per cent bonds on 2 March 2018 in line with its plans to reduce debt and its annual finance costs.

The bonds were issued on 24 June 2013 with a maturity date of 24 June 2020. Based on the closing price of the benchmark gilt on 19 January 2018, the aggregate redemption price is expected to be circa £89.0m, a premium of £9.0m over the aggregate issue price of the bonds. The redemption price of the bonds will be calculated at 11.00 a.m. on 28 February 2018 based on the benchmark gilt at that time plus a 0.5 per cent. margin, in accordance with, and as described in further detail in, the terms and conditions of the bonds. Following the redemption of the bonds, the Company's future interest payments are expected to reduce by £11.1m (£4.8m pa) in the period to 24 June 2020, a net saving of £2.1m.

[everhopeful]

Thank you for that information. I hold these. Do you have a feel for the price that they will be redeemed at from their statement. Does the 89 million redemption of 80 million original debt imply a premium of around 11%?

[Shinyuk]

Reading another thread here. https://www.fixedincomeinvestor.co.uk/x/forum.html#/discussion/480/helical-bar-6-2020
Estimate is around 1.109 plus the residual of the 6 % coupon. N.B. Some of this is linked to the prevailing price of the linked Treasury
Gilt 4.5% 2020 which can fluctuate by the redemption date. I’ve decided on a dual approach selling the smaller holding I have in my ISA but keeping
My holding in the Sipp till redemption.