Burford Capital Plc 6.125% 26/10/24

Please find some complementary research on the Burford Capital Plc 6.125% 26/10/24 bond, which is currently in the ‘Offer Period’ before being listed on the London Stock Exchange.

Burford Capital Limited (“Burford”) is the world’s largest provider of litigation finance with approximately 60 staff located in the US and the UK. The company trades on the London Stock Exchange with a market capitalisation of £629m.

The bond does not carry a credit rating but is being issued by a good business with a proven track record of making money. Burford’s 2015 operating profit provides interest cover of 3.1 times, a very comfortable margin

The bonds have a minimum investment of just £2,000 with multiples of £100 thereafter.

The Offer Period ends on 19th April but is likely to close early due to demand. The previous Burford bond rose immediately above par and are now yielding  just 5.6%. That bodes well for investors and we rate the issue a strong buy.