Unquote

Saga announces plans to raise £550m in IPO

  • Ellie Pullen
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Saga, the UK over-50s insurance group backed by Charterhouse, Permira and CVC, has announced its plans to raise around £550m in its IPO on the London Stock Exchange.

The net proceeds from the offering have been earmarked to pay down Saga's debt to approximately £700m immediately following admission to the market.

Its flotation will reportedly give Saga an enterprise value of around £3bn. The firm and its selling shareholders are expecting a free-float from the listing of around 25%.

Acromas – the holding company owned by Charterhouse, CVC, Permira and employees of the group – is expected to sell some of its shareholding in the offer.

Citigroup Global Markets is acting as sole sponsor, joint global coordinator and joint bookrunner for the offering alongside joint global coordinators and joint bookrunners Bank of America Merrill Lynch, Credit Suisse Securities and Goldman Sachs.

JP Morgan Cazenove and UBS are also acting as joint bookrunners, while Investec has been appointed joint lead manager alongside Mizuho. STJ Advisors was hired as financial adviser back in October, when news of the potential IPO first came to light.

Earlier this month, Saga refinanced its debt by putting £1.25bn of new term loan facilities in place, as well as a £150m multi-currency revolving credit facility.

For the 12 months ending January 2014, Saga generated revenues of £1.2bn and an EBITDA of £222.4m with a margin of 18.4%.

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