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Sage announce a debut bond and a share buyback scheme

Analysing companies' finances and value from their financial statements using ratios and formulae
TheMotorcycleBoy
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Sage announce a debut bond and a share buyback scheme

#393123

Postby TheMotorcycleBoy » March 6th, 2021, 3:41 pm

Quite canny.

A "debut" bond issue at 1.625%
https://www.investegate.co.uk/sage-grou ... 52366404P/

2 weeks later, announce a share buyback scheme at a point in time that the shares are yielding 3%
https://www.investegate.co.uk/sage-grou ... 11481585R/

Market seemed reasonably pleased with the buyback announcement.

Matt

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Re: Sage announce a debut bond and a share buyback scheme

#393128

Postby monabri » March 6th, 2021, 4:03 pm

£300m / £6per share = 50 million shares.

(or 50M/1100M =4.5% of total Ordinary shares).

50m x £0.17 divi = £8.5m of dividend payout savings.

(Maybe some of the cash will go towards paying their pension deficit)?

TheMotorcycleBoy
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Re: Sage announce a debut bond and a share buyback scheme

#393135

Postby TheMotorcycleBoy » March 6th, 2021, 4:18 pm

Thanks for doing the maths. TBF I've not researched their pension deficit in depth, as their "normal" debt ratios (leverage, debt/equity etc.) look fairly healthy.

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Re: Sage announce a debut bond and a share buyback scheme

#393143

Postby simoan » March 6th, 2021, 4:34 pm

TheMotorcycleBoy wrote:Thanks for doing the maths. TBF I've not researched their pension deficit in depth, as their "normal" debt ratios (leverage, debt/equity etc.) look fairly healthy.

You're right. The pension deficit is the least of Sage's problems currently. If you include the pension deficit, net gearing is 11%. For such a cash generative company it is not worthy of concern.

All the best, Si


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