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Burford 6.125% 2025

Gilts, bonds, and interest-bearing shares
Surerera
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Burford 6.125% 2025

#113828

Postby Surerera » January 28th, 2018, 3:37 pm

I've just received this email from Idealing:

"The Offer of Burford Capital Finance LLC 6.125% USD Bonds due 12 Aug 2025 is now open for acceptance. The bonds are due to be listed on the London Stock Exchange and trade using the symbol: BUR4. iDealing.com has been appointed as an Intermediary to the Offer.

The bonds are to be issued at par: USD 100 per USD 100 denominated."

I'm surprised the coupon is so high, the 6.5% 2022 bond trades at about 4%. It looks interesting though, if you are happy with dollar exposure.


Surerera

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Re: Burford 6.125% 2025

#113893

Postby gbjbaanb » January 29th, 2018, 12:36 am

USD is interesting - I wonder why they want that rather than GBP as usual, expansion in the US? Might be worth buying Burford itself.

As for the bonds, the BUR3 5% ones traded at a good premium immediately when listed, so I expect these to do the same, I reckon you could get a quick 2% return just from flipping them.

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Re: Burford 6.125% 2025

#113926

Postby Shinyuk » January 29th, 2018, 10:20 am

Not for me. Maybe you’ll be able to flip them but I don’t believe there has been a $ denominated bond on ORB before so no track record to go on. Plus if you hold why take on the currency risk? Yield hunters would be better off buying PM01 with a YTM of around 6.5% IMHO with no currency risk and possibly some further upside given the direction of travel with the oil price.

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Re: Burford 6.125% 2025

#113974

Postby everhopeful » January 29th, 2018, 1:19 pm

I hold their other bonds in an ISA but I see from the Information Booklet on these dollar denominated bonds that the company suspects they may not be eligible for inclusion in an ISA. I agree the Ordinary shares might be a better bet.

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Re: Burford 6.125% 2025

#114045

Postby stevensfo » January 29th, 2018, 5:14 pm

I'm surprised the coupon is so high, the 6.5% 2022 bond trades at about 4%. It looks interesting though, if you are happy with dollar exposure.


Apparently, not being offered by the usual online brokers.

Interesting thread here:

https://www.fixedincomeinvestor.co.uk/x ... d-due-2025

Steve

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Re: Burford 6.125% 2025

#114309

Postby Wozzitworthit » January 30th, 2018, 5:22 pm

Closed early today

Quote

Burford Capital Limited ("Burford"), a leading global finance and investment management firm focused on law, announces that it has today raised US$180 million through an oversubscribed issue of US dollar denominated bonds on the Main Market of the London Stock Exchange ("LSE") by Burford Capital Finance LLC, its financing subsidiary. The bonds will be traded on the LSE's Order Book for Retail Bonds ("ORB"), pay interest at an annual rate of 6.125% and mature on 12 August 2025.


This new capital will permit Burford to continue growing its legal finance business, to which it committed $1.3 billion in 2017. Burford's business today is larger and comprises a more flexible range of legal finance offerings than ever before, underpinned by a long-term, deep capital base on its balance sheet and in its investment funds. The new bond was issued at a tighter spread to the relevant government debt than any of Burford's previous issues.

Unquote


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