Informa issues £640m in bonds as part of Covid-19 action plan

Taylor & Francis owner Informa is issuing £640m worth of Euro bonds as part of its Covid-19 action plan.

The firm's announcement follows this month's half-year results which showed Informa as a whole saw adjusted operating profit fall £118.6m from £435.7m in the same 2019 period and revenues decline to £814.4m from £1.4bn.

Informa said the bonds issued have five-year maturities and a coupon rate of 2.125%. It said the issue, alongside the repayment and negotiation of US private placement notes, would lower the group's average cost of debt from 4.25% to 3.75%.

Gareth Wright, group finance director, said: "As outlined in our recent half-year results, through our Covid-19 action plan we are taking a series of actions to ensure the stability and security of the Informa Group through 2021 and beyond."

As part of a Covid-19 action plan, the company has begun a cost-cutting programme aimed at making £400m direct savings to adjusted operating profit, including targeted compulsory redundancies. The redundancies do not affect Taylor & Francis.

Wright said: "Our cost management programme, which has delivered £600m to date, combined with today's bond issue and the planned renegotiation or repayment of our US private placement notes, will help secure positive monthly cashflows by January 2021 and provide long-term liquidity and financing flexibility."