20th May

Burford 5% retail bond closes early - £175 million raised in just one week

Lead manager Peel Hunt pulled stumps early on its most recent retail bond issue as Burford Capital raced to £175 million in just one week. 

Highlighting the great demand for retail bonds from DIY investors, litigation finance provider Burford Capital Ltd closed the issue at 11.30 am on Thursday, having raised £175 million in an oversubscribed issue of retail-eligible sterling bonds, making this one of the largest raise on the LSE’s Order Book for Retail Bonds (ORB) since 2012.  

The proceeds of the issue will permit growth of its legal finance business, which stands at over $2 billion invested and available for investment. 

The company will also repay early the $43.8 million of loan notes due 2019 it created in December, when it agreed the purchase of US peer GKC Holdings LLC, the parent of Gerchen Keller Capital, the biggest private capital manager in the litigation finance sector. 

"We are delighted with the strong response to this bond issue, which has well exceeded both our previous issues and continues to provide us with a flexible and immediately accessible capital base to address the attractive opportunities we see," said Chief Executive Officer Christopher Bogart.  

The bond will pay 5% p.a. for nine and a half years through to December 2026; investors were able to participate from just £2,000. 

Speaking with Mr Bond a leading online retail stockbroker that distributed the bond said:  

“Yet again, we have seen extremely strong demand from our retail customers for a Burford Capital Plc retail bond new issue, their third in as many years. 

 Retail bond new issues continue to be an extremely popular investment choice for our customers and we look forward to seeing a return to a more regular flow of new issuance to support the obvious demand from the retail customer.” 

 The announcement comes at a time of considerable IPO activity Shares in AIM-listed Burford Capital were up 2.4% at 866p on Friday, giving it a market capitalisation of £1.82 billion; its stock is up by over 50% in 2017.  

Add Your Comment