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Punch Taverns buys back £49.5 million 5% convertibles due 2010
By Susanna Moon
Chicago, Oct. 27 - Punch Taverns said it repurchased £49.5 million, or 24% of the outstanding nominal value, of 5% convertible bonds due 2010 issued by Punch Taverns (Redwood JerseyCo) Ltd.
Following the buybacks, £209 million of the convertibles will be outstanding.
The company said it bought back the bonds at an average price of £75 per £100 note, reducing the redemption value due in December 2010 by £70.8 million.
The purchases were funded from cash.
Punch Taverns said it will continue to monitor its use of cash to maximize the benefit to shareholders.
"The strong cashflows generated by our business have enabled us to realize the opportunity offered by the current weakness in debt markets," Giles Thorley, chief executive of the company, said in a press release. "We have redeemed 24% of our convertible bonds, two years ahead of schedule and have saved over £20 million in the process."
Punch Taverns is a pub company based in Burton on Trent, England.
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