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William Hill’s £350m seven year high yield deal last week grabbed an opportunity opened up by the extension to the Brexit deadline, according to group treasurer Mark Hirst, supplying a sterling market that has seen sparse issuance so far this year. But the constrained supply in the market meant the company’s attempt to buy back its 2020s at 103 attracted limited investor interest.
“We were prepped and ready in mid-February, but we were waiting for that window,” said Hirst. “There was a lot of noise to do with Brexit which spooked the market, and we were mindful of what happened to Co-Op Group, and particularly conscious of execution risk. But when Parliament agreed the extension it took a lot of the focus off Brexit and gave the market a break.”
Co-Op Group, a high yield-rated UK corporate, brought a new issue and tender in late November last year, but volatility driven...