Sheffield-based international building materials supplier SIG plc said on Friday it has successfully priced its sale of €300 million of 5.25% fixed rate senior secured notes due 2026.
SIG said it will use the net proceeds from the offering to repay its existing private placement notes, repay its existing credit facilities and cancel any commitments thereunder, and fund cash on the group’s balance sheet for general corporate purposes.
“The offering is expected to close and the notes are expected to be issued on or about 18 November 2021, subject to customary conditions precedent,” said SIG.
“The notes are expected to be listed and admitted to trading on the Official List of The International Stock Exchange.”
SIG also said that in conjunction with the pricing of the offering, it has entered into a new revolving credit facility agreement that provides for aggregate borrowings of up to an equivalent of £50 million with a group of relationship banks, which initially will be undrawn.
SIG CEO Steve Francis said: “We are delighted with the response we have received from investors.
“The success of this transaction enables us to refinance our existing facilities well ahead of their maturity dates and on more attractive terms.
“Together with our new revolving credit facility, the notes further improve the group’s financial flexibility by extending the maturity profile of the group’s borrowings and increasing its available liquidity.
“This will provide a strong base from which to drive forward our ‘Return to Growth’ strategy, which has delivered notable improvements in growth and profitability to date, and which we are increasingly confident will continue to deliver value for all stakeholders in the near and longer term.
“On behalf of the board, I wish to thank our bond investors for their support, and for the confidence they have shown in the group’s strategy and outlook.”