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International Workplace Group PLC on Friday announced multiple new debt transactions, and reaffirmed its full-year financial guidance. The Zug, Switzerland-based FTSE 250 listing, which provides rentable workspaces for companies and individuals, said it ‘has successfully completed a series of debt transactions’ which extend its debt maturity but maintain the same level of total debt; and ‘facilitates the eventual repayment of the convertible bond due December 2027’. International Workplace said the transactions include a new $720 million revolving credit facility, due in June 2029. Additionally, €400 million of IWG’s €575 million 6.5% investment grade bond, due June 2030, has been swapped to a $427.7 million 8.153% coupon. The hedge will remain in place for the life of the bond and has qualified for hedge accounting with amortisation of associated fees over a six-year period, the company said. IWG also said it has reduced the face value of its outstanding £350 million convertible bond - swapped to $445.2 million - to £231.7 million (swapped to $294.8 million). International Workplace noted that it has a Fitch credit rating of BBB or ’Stable’. IWG also said it maintains its financial expectations for 2024, and ‘makes no changes’ to its outlook statement from early May. At the time, IWG said it was confident that both 2024 earnings before interest, tax, depreciation and amortisation and net financial debt will be in-line with management’s expectations, which had not changed since its full-year results in March. Earlier this week, on Tuesday, IWG said it entered into irrevocable agreements ‘with certain holders’ of IWG International Holdings Sarl’s £350 million 0.5% convertible bond. The investors, International Workplace said, will sell £118.3 million face value of the convertible bond back to the company for consideration of £109.0 million. It added that the same investors have placed orders in respect of IWG US Finance LLC’s previously-announced fixed-coupon bond offering, and increased the total nominal amount by 15% to €575 million. IWG said that should this transaction complete as expected, the nominal amount outstanding will total £231.7 million. International Workplace Group shares were down 0.3% at 173.90 pence on Friday afternoon in London. Copyright 2024 Alliance News Ltd. All Rights Reserved.
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