Capita PLC on Monday said its chief executive officer will retire at the end of the year to be replaced by an Amazon.com Inc divisional leader, and announced a large senior notes placement.
The London-based process outsourcing and professional services company said CEO Jon Lewis intends to retire from the board at the end of this year, but will remain at Capita until July 2024 to ensure an orderly transition.
Lewis, who was appointed as CEO in 2017, began considering retirement last year but delayed such plans to lead Capita’s response to a cyber attack in March.
Capita has hired Adolfo Hernandez, vice president of Global Telecommunications at Amazon Web Services, to replace Lewis as CEO.
Chair David Lowden said Capita was ‘delighted’ to secure Hernandez after a ‘thorough’ search, adding: ‘Adolfo has a great track record in accelerating revenue growth driven by digital services and, as we look to deliver on the next stage of our development at Capita, his appointment is testament to the exciting potential for the business.’
Capita also announced that it has issued unsecured senior loan notes of £50 million and $68 million, totalling £102 million, in the US private placement market with three and five year maturities at an average annual GBP coupon of 9.45%.
Capita said it will use the notes to refinance existing debt and for general corporate purposes, and said the placing will diversify its sources of funding.
Shares in Capita were up 0.1% at 28.00 pence on Monday afternoon in London.
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