Burford Capital completes $500 million senior notes issuance

NEW YORK - Burford Capital Limited (NYSE:BUR) (LSE:BUR), a $3.1 billion market cap litigation finance firm with a "GREAT" financial health rating according to InvestingPro, has completed a $500 million issuance of senior notes, the company announced Monday.

The eight-year bonds were priced at 7.50% and the offering was oversubscribed, according to the company. The transaction closed on Friday, July 11.

Burford plans to use the proceeds to repay bonds maturing in 2025, with the remainder allocated for general corporate purposes, including potential repayment of other existing debt such as bonds due in 2026.

"The offering was substantially oversubscribed, reflecting strong demand and market confidence in Burford’s performance, and enabling us to increase the size of the issuance while simultaneously decreasing its price," said Christopher Bogart, CEO of Burford Capital, in a press release statement.

Bogart noted that the pricing represents "the most competitive pricing relative to Treasuries that Burford has ever achieved."

Burford Capital describes itself as a finance and asset management firm focused on law, with businesses including litigation finance, risk management, and asset recovery. The company is publicly traded on both the New York Stock Exchange and London Stock Exchange.

The announcement comes as the company continues its operations in the litigation finance sector, where it provides funding for legal cases in exchange for a portion of settlements or judgments.

In other recent news, Burford Capital Limited announced a planned private offering of $400 million in senior notes due 2033 through its subsidiary, Burford Capital Global Finance LLC. The senior unsecured notes will be guaranteed by Burford Capital and its subsidiaries, Burford Capital Finance LLC and Burford Capital PLC. The proceeds from this offering are intended to repay the company’s 6.125% bonds due in 2025 upon maturity, with the remaining funds allocated for general corporate purposes. These purposes may include the potential repayment of other existing debts, such as Burford Capital PLC’s 5.000% bonds due in 2026. The securities will not be registered under the U.S. Securities Act and will be offered exclusively to qualified institutional buyers or non-U.S. persons outside the United States. All buyers must meet the criteria of "Qualified Purchasers" under the U.S. Investment Company Act of 1940. The offering is contingent upon market and other conditions. The announcement does not serve as an offer to sell securities or a notice of redemption for the 2025 bonds or any other existing debt.

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