The Corporate Services Group, owner of the Blue Arrow chain, is to repay £10m of loans next month, ahead of schedule.

It will repay the 10% Secured Guarantee Loan Notes, due for redemption in 2011, on 3 July. In accordance with the terms of the Notes, it will pay a price equal to 105% of the principal.

The repayment reduces the principal amount of Notes outstanding to £35m from £45m.

The redemption will result in lower interest payments for the Group going forward. CSG said it intended to continue to redeem the Notes as and when additional resources become available to it.

The redemption will be funded by increased borrowings from CSG¹s existing senior lenders, who themselves have each enhanced the facilities available to the Group.

However, CSG still has a relatively high level of debt. Other recruiters such as Michael Page and Hays have surplus cash and have used it to buy back shares.

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