StockMarketWire.com - Grocery food manufacturer Premier Foods said it would redeem £40 million of corporate bonds following strong trading in the first half of its financial year.

The company said it had provided a certificate to HSBC notifying of its intention to redeem £40 million of the £130 million outstanding on notes due in July 2022.

The move, it added, was 'in line with requirements of the indenture of the notes' and further to the £80 million redemption completed in June.

'This partial redemption reflects the group's strong trading momentum during the first half of this financial year together with further progress on reducing net debt,' Premier Foods said.

'As the group continues on its path to deleverage the business, its intention is to utilise future free cash flow to reduce its cost of financing.'

'Following the completion of this partial redemption of notes, the group expects to save approximately £2m per annum in interest costs.'



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