Saga units sail with £450m HPS refinancing increase

Saga, the monetary providers and journey supplier to the over-50s, is tapping one of many world’s largest funding companies as a part of a refinancing geared toward relieving stress on its stability sheet.

Sky Information has learnt that London-listed Saga is lining up HPS – which is within the technique of being taken over by the asset administration behemoth BlackRock – to assist refinance greater than £450m of its present debt.

Financiers stated an settlement was prone to be introduced alongside a scheduled buying and selling replace from the corporate on Thursday morning.

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A refinancing will probably be a lift to Saga, which has been weighed down by a debt pile which is large relative to the worth of its fairness.

It should come months after the corporate struck a partnership take care of the Belgian insurer Ageas, which includes a collection of money funds to the British enterprise.

In February final 12 months, it additionally held talks with Open, an Australian firm, a couple of sale of the division however the discussions fell aside.

Saga has beforehand signalled that it will discover an analogous partnership mannequin for its cruises division, though a transaction will not be considered imminent.

Shares in Saga have fallen by simply over 20% over the past 12 months, leaving it with a market capitalisation of about £165m.

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Sir Roger, the corporate’s former chief government, was parachuted again in to guide a turnaround in the summertime of 2020, investing £100m as a part of a broader capital-raising.

That got here after it spurned a takeover bid for the entire firm from personal fairness buyers.

A Saga spokesperson declined to touch upon Wednesday night.