Investment Ideas 

Burford bond closes early

Burford Capital (BUR) closed its retail bond issue two weeks early - and just eight days after it was launched. The issue raised £90m gross, or £88.9m after fees, far more than the £50-75m initially mooted. The company will pay 6.5 per cent of the capital a year in coupons to its new bondholders, which works out at about £5.9m.

The fund-raising is something of a coup for the specialist finance company, which provides finance for litigation. It is the first Aim-listed company to raise money through a retail bond, and possibly the smallest company to do so. Burford has no bank debt and at the December year-end had $58m (£34m) of cash. The £90m retail bond therefore brings its net debt to about a quarter of net assets ($352m at the year-end).

IC View

We tipped Burford's shares a months ago (Buy, 121p, 26 Jun 2014) on the basis of its impressive track record of winning cases and generating cash. The retail bond is another vote of confidence in the company's management. Buy at 120p.

Last IC view: Buy, 121p, 26 Jun 2014

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