Angel Trains, a train leasing company, has entered an interest rate swap to convert a recent GBP250 million (USD434 million) bond into a synthetic floating rate liability. Stuart McCreadie, treasurer in London, said this is in keeping with the company's debt policy, which is to raise floating rate debt.
McCreadie said, "This is the first bond of this nature that we've issued. We were looking to diversify our debt portfolio, and the pricing was good and demand was high."
Royal Bank of Scotland, which owns Angel Trains, was the bookrunner. McCreadie declined to reveal the rate paid in the swap or the swap counterparty.
Although Angel Trains has subsidiaries in Europe, but has no plans to enter a currency swap to convert the proceeds of the note, McCreadie said. The company is considering issuing a euro-denominated bond next year, he added.
