Funerals business Dignity (DTY) has announced plans to issue new loan notes, which should trigger another return of cash to shareholders. Repeating a procedure it has successfully used to release value in the past, the company will issue new loan notes to take advantage of low interest rates and use some of the proceeds to repay a £34m loan from the Royal Bank of Scotland, which was used to finance the purchase of Yew Holdings.
IC TIP:
Buy
at
1543p
Should it prove successful, the issues should raise a total of £95m, which will allow the company to make a return of cash to shareholders, envisaged to be around 100p a share.
