Funerals provider Dignity has confirmed its plans to issue further secured loan notes, a move which will enable the company to return a chunk of cash to its investors.
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The move, first highlighted at Dignity’s interim results presentation in July, will see the company raise £87.1m. After paying off fees, interest on other secured notes and a contribution to its defined benefits pension scheme, Dignity will return £63.9m to shareholders, equivalent to 100p a share. The extra payment means Dignity will cancel the 4.43p interim dividend announced in July. Investors will have the choice of receiving the payment as either a dividend or return of capital.
