Debt investors
M&S Group’s funding strategy is to ensure a mix of funding sources offering flexibility and cost effectiveness to match the requirements of the Group. Operating subsidiaries are financed by a combination of retained profits, bank borrowings, medium term notes, finance leases and committed bank facilities.
The objective is to ensure that the Group has appropriate funds to manage its financial obligations and to achieve its business objectives. In addition it is to ensure that the Group has a reasonable level of funding diversity in terms of investors and maturity.
Marks and Spencer has issued Medium Term Notes (MTN) as follows:
| Maturity date | Issued amount | Coupon | Carrying amounts | Interest paid | Date | Minimum denominations |
|---|
| 20111 |
£375m |
6.375% |
£382.0m |
Annually |
7th November |
£1,000 |
| 20121 |
£400m |
5.875% |
£421.4m |
Annually |
29th May |
£50,000 and increments of £1,000 |
| 20141 |
£400m |
5.625% |
£398.8m |
Annually |
24th March |
£1,000 |
| 20172 |
US$500m |
6.250% |
£253.0m |
Semi-annually |
2nd June / 1st December |
$100,000 and increments of $1,000 |
| 20372 |
US$300m |
7.125% |
£151.1m |
Semi - annually |
1st June / 1st December |
$100,000 and increments of $1,000 |
| 20371,3 |
£250m |
6.875% |
£252.9m |
Annually |
13th December |
£50,000 and increments of £1,000 |
1 These notes are issued under Marks and Spencer plc’s £3bn European Medium Term Note Programme and all pay interest annually.
2 Issued under rule 144A of the U.S. Securities Act. These notes have been swapped back into sterling proceeds and pay fixed sterling rates of 7.034% and 7.238% respectively. These cross currency swaps have been designated as cash flow hedges in relation to the US$ notes.
3 These notes include an investor put and issuer call option exercisable in December 2012. The Group’s right of call within these notes can be assigned which provides a discount of 0.75% per annum until December 2012, giving a net interest rate for the first five years of 6.125%. If called at that date, these notes will continue to exist until December 2037 at an underlying rate of 4.54% plus the applicable credit spread at that time.
Debt maturity chart
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