Burford Capital Limited announced that it will exercise its optional redemption right to call the aggregate principal amount of its £175 million, 5.0 % guaranteed bonds due 2026 on January 30 2026. The bonds, issued under a trust deed dated June 1 2017, are guaranteed by Burford Capital, Burford Capital Finance LLC and Burford Capital Global Finance LLC, with U.S. Bank Trustees Limited acting as trustee.
The redemption price will be the higher of 100 % of the principal or a make‑whole amount calculated by applying the yield on a 1.5 % UK Treasury Stock due 2026 plus a 1.0 % spread, as determined by the appointed financial adviser. All accrued but unpaid interest will be paid up to, but excluding, the repayment date, ensuring bondholders receive a fair return for early repayment.
To fund the redemption, Burford Capital has priced a $500 million offering of senior notes due 2034, which will be used to retire the 2026 bonds and support general corporate purposes. The move reflects a strategic effort to replace a shorter‑dated, higher‑coupon debt with a longer‑dated, lower‑cost instrument, thereby improving the company’s debt maturity profile and reducing interest expense.
The announcement comes amid a period of investor scrutiny following a 31.6 % decline in Burford’s share price over the past six months. The refinancing signals confidence in the company’s ability to secure capital on favorable terms and underscores management’s focus on maintaining a strong balance sheet while preserving flexibility to pursue litigation‑finance opportunities.
By reducing long‑term debt and freeing up capital, Burford positions itself to invest in high‑return projects and to refinance other obligations at more advantageous rates, potentially lowering its overall cost of capital and supporting future growth initiatives.
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