Saga, the monetary providers and journey providers supplier to the over-50s, has drafted in a group of City bankers to assist shore up its funds, weeks after tapping its chairman for a £35m mortgage.
Sky News has learnt that Saga has been working with Lazard to advise on potential methods to strengthen its stability sheet, together with reviving the sale of its insurance coverage underwriting division.
City sources mentioned that it had additionally been analyzing doable alternate options regarding the financing of its cruise ships, Spirit of Adventure and Spirit of Discovery.
Lazard is claimed to have introduced its evaluate of the corporate’s earlier work on debt refinancing and restructuring choices to Saga’s board in latest days.
Other choices, the small print of which have been unclear on Monday, are additionally understood to be into consideration.
The analysis of latest company exercise by Saga’s board comes forward of a £150m bond reimbursement which is due in May subsequent 12 months.
In its interim outcomes introduced in September, Saga’s stability sheet was saddled with internet debt of greater than £650m.
While the corporate’s shares have staged a mini-recovery within the final 12 months, rising by practically 1 / 4, it nonetheless has a market capitalisation of lower than £175m.
Roger De Haan, the corporate’s former chief government, was parachuted again in to guide a turnaround in the summertime of 2020, investing £100m as a part of a broader capital-raising.
That got here after it spurned a takeover bid from personal fairness buyers.
At the beginning of this 12 months, it unveiled a world web site known as Saga Exceptional, aimed toward offering recommendation and providers to over-50s shoppers.
Euan Sutherland, the previous Co-op Group and Superdry boss who now runs Saga, mentioned in January: “We are laying out our plans as we pivot Saga for growth and sharpen our focus on building the largest and fastest-growing business for older people in the UK.
“This is all a part of the broader plan to make Saga the main Superbrand for, what we name, the ‘Experience Generation’.”
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A big a part of the corporate’s present travails relate to circumstances within the motor insurance coverage market, which it mentioned had been impacting its potential to generate money and scale back debt.
Saga had additionally been in talks to promote its underwriting enterprise to Open, an Australian insurer, however didn’t finalise a transaction.
In September, it mentioned it “believes that greater value could be generated once conditions within the insurance market improve”.
“We will, however, continue to evaluate our options as the landscape evolves.”
Mr De Haan, the son of the corporate’s founder, had already lent Saga £50m earlier than extending that to an £85m facility earlier within the autumn.
Shares in Saga have been buying and selling on Monday at round 122.7p.
A Saga spokeswoman declined to remark.
Source: information.sky.com”