Sheffield’s SIG plans €300m bond sale

Sheffield-based international building materials supplier SIG plc said on Monday it has mandated bookrunners to carry out roadshows for a proposed debt offering of €300 million worth of bonds.

SIG also said it intends to enter into a new revolving credit facility agreement of up to £50 million.

In a stock exchange statement, the Sheffield company said: “SIG plc has made significant progress over the last eighteen months under its ‘Return to Growth’ strategy, demonstrated in strong trading and improving profitability during 2021 to date.

“The group maintains a solid financial position, with a supportive lender group, healthy liquidity, and financing facilities that mostly mature in May 2023.

“Given the progress made, the board has been exploring options to evolve the group’s financing arrangements in order to provide a platform to support its strategic growth ambitions into the medium term.

In line with this approach, and in light of the continued improvement in its operating performance, the group today announces that it has mandated bookrunners to carry out roadshows in connection with a proposed offering for an aggregate principal amount of €300,000,000 senior secured notes due 2026.

The completion of the offering will be subject to market conditions and, if completed, the company will use the net proceeds from the offering to: (i) repay its existing private placement notes, (ii) repay its existing credit facilities and cancel any commitments thereunder, and (iii) fund cash on the group’s balance sheet for general corporate purposes.

Concurrent with the offering, the company further intends to enter into a new revolving credit facility agreement that will provide for aggregate borrowings of up to an equivalent of £50,000,000.

The notes and the new revolving credit facility will be guaranteed on a senior secured basis by certain subsidiaries of the company.

“The interest rate and offering price of the notes will be determined at the time of pricing of the offering, subject to market conditions.

“An update will be provided in due course.”