Sage Group (LON:SGE) announced this morning it has completed a $300 million issue of US private placement loan notes. Sage is a leading supplier of business management software and services to 6.1 million customers worldwide. The Company confirmed the completion of the issuance, the proceeds of which will refinance existing debt facilities. The notes mature $200 million in 2015, $50 million in 2016 and $50 million in 2017 and carry nterest coupons of 4.39%, 4.78% and 5.15% respectively. The Group's Finance Director, Paul Harrison, commented:
"We were pleased with the response from US Private Placement investors, with the good demand for Sage's debt reflecting our strong cash flows and high levels of recurring revenue. The notes provide additional flexibility, extended maturities and diversify our sources of funding."
Today's report comes shortly after an announcement on the 19th March which confirmed that Klaus Michael Vogelberg, GroupChief Technology Officer , had exercised some options and the Company's first quarter results in January where it reported trading in-line with expectations. Subscription revenue growth was said to offset subdued markets for software and software-related services and the Company said that it continued to navigate successfully the challenging market conditions through our focus on high quality customer service". Sage Group was formed in 1981, and floated on the London Stock Exchange in1989. The company has 13,400 employees and operates in over 24 countries covering the UK, Europe, North America, South Africa, Australia, India and China.
