Saga Group confirms multi-million pound investment deal

The group has agreed a £200 million five-year loan, another £100 million revolving credit facility over the same period and launched a £250 million seven-year bond for investors.

In a Stock Exchange statement it said: “With the group’s existing facilities expiring in April 2019 and given the positive backdrop in the debt market, we have decided that this is a good time to refinance our facilities.”

It added: “The proceeds will be used by the group for refinancing the group’s existing bank facilities expiring April 2019 and thereafter for general corporate purposes. The overall level of indebtedness will not change.”

The investment bonds will be issued this week and will pay interest at 3.375%.

Jonathan Hill, Saga chief financial officer said: "We are pleased to have secured this refinancing which will strengthen the group’s balance sheet and provide us with additional flexibility, whilst further diversifying our debt structure. We thank our banks for their continued support."