IG Group Completes £300 Million Debt Refinancing

The London-listed IG Group announced on Friday that it has completed a comprehensive debt refinancing exercise for the implementation of a long-term funding structure.

The refinancing efforts involved the issue of £300 million in senior notes bonds that will be due in 2028. These bonds were rated BBB by Fitch Ratings and were priced on Thursday, witnessing strong investor demand.

The group committed the £300 million revolving credit facility (RCF) with an initial maturity of three years. Additionally, it can request an increase in the RCF size to £400 million, along with two maturity extensions of up to one year each.

Moreover, the refinancing involved repayment and cancellation of the group’s existing £125m RCFs and £250m term loan facilities.

After the completion of the refinancing, the total available credit facilities of IG Group shot up from £375 million to £600 million, which can be further increased to £700 million with the extension of the RCF.

Increasing Available Liquidity Liquidity The term liquidity refers to the process, speed, and ease of which a given asset or security can be converted into cash. Notably, liquidity surmises a retention in market price, with the most liquid assets representing cash.The most liquid asset of all is cash itself.· In economics, liquidity is defined by how efficiently and quickly an asset can be converted into usable cash without materially affecting its market price. · Nothing is more liquid than cash, while other assets represent The term liquidity refers to the process, speed, and ease of which a given asset or security can be converted into cash. Notably, liquidity surmises a retention in market price, with the most liquid assets representing cash.The most liquid asset of all is cash itself.· In economics, liquidity is defined by how efficiently and quickly an asset can be converted into usable cash without materially affecting its market price. · Nothing is more liquid than cash, while other assets represent Read this Term

IG’s filing with the London Stock Exchange Stock Exchange A stock exchange, also known as a securities exchange or bourse represents is a facility where stockbrokers and traders can buy and sell securities.This includes shares of stock, bonds, exchange-traded funds (ETFs), or other financial instruments. By extension, stock exchanges can also provide facilities for the issue and redemption of such securities and instruments and capital events including the payment of income and dividendsStock exchanges have developed into a permanent fixture in the fin A stock exchange, also known as a securities exchange or bourse represents is a facility where stockbrokers and traders can buy and sell securities.This includes shares of stock, bonds, exchange-traded funds (ETFs), or other financial instruments. By extension, stock exchanges can also provide facilities for the issue and redemption of such securities and instruments and capital events including the payment of income and dividendsStock exchanges have developed into a permanent fixture in the fin Read this Term detailed that the latest refinancing will provide liquidity levels that can be utilized to support its strategic growth ambitions. In addition, it will increase its financial flexibility by lengthening the maturity of the debt facilities.

“This comprehensive refinancing puts in place a long-term funding structure that provides the Group with a balanced mix of senior debt arrangements with attractive maturities,” Charlie Rozes, Chief Financial Officer of IG Group, said in a statement.

“This will enable the Board to continue to pursue its value-enhancing strategic objectives with confidence, while at the same time managing our risks by strengthening our capital base and liquidity position.”

Meanwhile, IG recently reported a 6 percent jump in its revenues for the first quarter of the fiscal year 2022. Furthermore, the Group strengthened its presence in the US with the acquisition of tastytrade earlier this year.