Stobart Group raises £53m through placing of bonds
Stobart Group has raised £53.075m through a bonds issue, today.
The Carlisle-based aviation, energy and civil engineering group said its wholly-owned subsidiary, Stobart Finance, had placed the bonds which have a five-year maturity.
The net proceeds of the bonds are intended to be used to support the company’s growth plans for aviation and energy, it said.
Settlement and delivery of the bonds is expected to take place on May 8, and it is intended that application will be made for the bonds to be admitted to trading on the open market of the Frankfurt Stock Exchange within 30 days after the closing date.
Stobart Group chief executive, Warwick Brady, said: “Stobart Group is focused on accelerating the growth in its core aviation and energy divisions.
“These divisions require further investment in order to optimise shareholder returns on a sustainable basis.
“The group has reviewed its capital requirements and the most effective use of its assets and investments in order to achieve this aim.”
He added: “The issuance of this bond allows Stobart Group to realise the value of its interest in Eddie Stobart Logistics while protecting the long-term interests of shareholders.”
On February 22, Stobart Group confirmed it had disposed of its regional airline and aircraft leasing businesses in return for becoming a 30% shareholder, alongside Virgin Atlantic and Cyrus Capital, in a newly-created private vehicle, Connect Airways, which successfully bid for the Flybe business.