New Issue-Royal Mail prices 500 mln euro 2024 bond

[TrueBlueTerrier]

http://www.reuters.com/article/2014/07/ ... C820140723" onclick="window.open(this.href);return false;

July 23 (Reuters) -Following are terms and conditions

of a bond priced on Wednesday.

Borrower Royal Mail Plc

Guarantor Royal Mail Group Ltd

Issue Amount 500 million euro

Maturity Date July 29, 2024

Coupon 2.375 pct

Reoffer price 99.482

Spread 108 basis points

Underlying govt bond Over Mid-swaps, equivalent to 128.8bp

Over the 1.5 pct Due 2024 DBR

Payment Date July 29, 2014

Lead Manager(s) BNP Paribas, JP Morgan, RBC CM & RBS

Ratings BBB (S&P)

Listing London

Full fees Undisclosed

Denoms (K) 100 - 1

Governing Law English

[Lincox]

Looks like they need some dosh to pay out the dividends.

[freelunch]

With interest rates so low RM need only raise prices by rate of inflation each year and effectively get to play with interest-free loan money.
Load the company with debt, reward themselves huge bonuses and tell each other how well they're doing. Nice work