Kingspan raises $200m from 10-year loan notes placement in US market
Published 12/08/2011 | 05:00
CAVAN-based insulation maker Kingspan has completed a $200m (€140m) placement in the US in an offer that was three times over-subscribed.
The company said yesterday that the money raised from the 10-year senior loan notes will be used to retire existing debt and for general corporate purposes.
The unsecured notes carry a coupon -- or interest rate -- of 5.25pc, which Kingpsan said has been hedged to give it a mix of fixed and floating interest rates. Part of the proceeds have been converted to sterling. Kingspan chief financial officer Geoff Doherty said that the company was pleased with the response from the US market.
"The transaction was three times over-subscribed and due to the strong investor demand the placing was increased from $125m to $200m," he said. "It improves our capital structure by lengthening our debt maturity profile at very competitive rates." He added that the placing also afforded Kingspan "significant financing headroom" as it seeks to develop its business.
The placement was facilitated and arranged by Royal Bank of Scotland (RBS), with RBS and HSBC jointly coordinating the swap auction.
Bloxham Stockbrokers said the placing appeared to be a "good deal" for Kingspan, which releases interim results on Monday week.
Shares in the company closed up 8.4pc at €6.40 yesterday.