Our funding strategy
Our funding strategy is to maintain a balance between continuity of funding and flexibility through the use of capital markets, bank loans and overdrafts. To facilitate access to these sources of funds we seek to maintain a long term investment grade rating on our long term debt.
Our credit ratings:
Standard & Poor’s BBB - Stable outlook
Moody’s Baa3 - negative outlook
Our financial policy
Our policy is to maintain prudent debt capital ratios to ensure continuing access to capital on attractive terms and conditions.
To support our 'Events First' strategy, we target a leverage ratio of between 1.5–2.0 times net debt/ EBITDA which provides flexibility for biennial cycles, will provide capacity to invest in the business through bolt-on acquisitions, and which is consistent with our investment grade rating. Under the policy there is flexibility to move outside the target leverage corridor for periods of 12-18 months.
Our maturity profile
Our debt profile extends 4-5 years out. The key instruments are:
- $350m 5.75% dollar bonds due 2020. Further detail can be found in the bond prospectus (please link as before)
- £400 syndicated revolving credit facility. The facility bears interest of LIBOR plus 0.6% whilst the Groups rating is BBB-/Baa3. The future interest rate is dependent on the credit rating of the Group.
Debt investors are key stakeholders in UBM plc and we are committed to keeping all our investors up to date on developments at UBM plc. To obtain further information please contact:
Head of Treasury, UBM plc Tel: +44 (0) 207 921 5010