19/07/2013
Pricing of further Secured Notes and intention to return £1.08 per share to shareholders
On 18 July 2013, Dignity Finance PLC (the issuer of the Secured Notes and a subsidiary of Dignity (2002) Limited, the holding company of the securitised sub-group of Dignity plc) issued a preliminary prospectus.
The Group is pleased to announce that pricing for the new Secured Notes has now been determined. Class A Notes with an outstanding nominal amount of up to £34.3million are intended to be issued at a cash price of approximately 120.1% and Class B Notes with an outstanding nominal amount of up to £40.7million are intended to be issued at a cash price of approximately 137.7%.
Consequently gross proceeds from the new Secured Notes are expected to be £97.7 million. After retaining funds for fees, accrued interest on the further Secured Notes, a payment of £1 million into the Group’s defined benefit pension scheme and repayment of the Dignity Group’s £34million term loan with the Royal Bank of Scotland, it is the Dignity Group’s intention to return £61.9million, equating to £1.08 per ordinary share, to its shareholders. As a result of this intended return, Dignity plc does not intend to pay a separate interim dividend.
The Dignity Group expects that the issuer will execute the subscription agreement with the Lead Manager, the Royal Bank of Scotland plc on or around 22 July 2013. Closing and settlement of the new Secured Notes is planned to occur on 30 July 2013. Until such time, there can be no guarantee that the further Secured Notes will be issued and consequently no guarantee a return of cash will be made to shareholders.
Based on this timetable, the Group intends to issue a notice of a general meeting and an accompanying shareholder circular on or around 23 July 2013. It is anticipated that at the general meeting, resolutions will be proposed which, if passed, will give shareholders the ability to receive the £1.08 per share either in the form of a dividend or as a return of capital. The meeting will also be asked to approve a consolidation of the Group’s ordinary shares, which is intended to maintain comparability of the Group’s performance measures such as earnings per share and share price.
The Group will make further announcements as appropriate.
For more information
Mike McCollum, Chief Executive
Steve Whittern, Finance Director
Dignity plc +44 (0) 121 354 1557
Richard Oldworth
Sophie McNulty
Louise Hadcocks
Buchanan Communications +44 (0) 20 7466 5000