Bonds of Phones4U Ltd. jumped after the British mobile phone retailer sold an insurance unit for as much as $160 million in cash.
The company’s 430 million pounds ($671 million) of 9.5 percent notes due in April 2018 rose 1.39 pence on the pound to 105.04 pence after the sale of Lifestyle Services Group unit to Assurant Inc. (AIZ), according to Bloomberg prices. The Newcastle-Under-Lyme-based company’s bonds are at the highest since Feb. 1, the data show.
Lifestyle has annual revenue of about $185 million from selling mobile phone insurance to more than 8 million customers, New York-based Assurant said in a release.
The bonds, issued through Phones4U Finance Plc, are rated B3, six levels below investment grade, at Moody’s Investors Service and a level higher at B by Standard & Poor’s.
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