United Drug secures funding of €240m to aid future growth
THE pharmaceuticals wholesaler United Drug yesterday said it had secured funding worth almost €240m while extending its debt maturities by a decade.
The company said it had secured a €135m syndicated bank facility and combined that with a new €102m private placement note issue.
The bank facility is being provided by Bank of Ireland, Ulster Bank, Danske Bank and HSBC.
A spokesman for United Drug confirmed that it was a revolving facility. The syndicated bank facility has a four-year term and replaces existing bilateral arrangements, said the company.
The new €102m private placement issue, which was apparently significantly oversubscribed, was issued in two tranches with €51m maturing in seven years and €51m maturing in 10 years.
Group finance director Barry McGrane said the company was happy to have put the funding in place. "We are pleased to have completed this significant financing exercise. Its purpose is to lengthen our debt maturities and provide additional facilities to the group.
"The financing will increase our funding costs but provides substantial additional capacity to the group to support its future development."