Building insulation group Kingspan has completed a $200 million (€140 million) private placement of 10 year senior loan notes, it confirmed today.
The notes are unsecured, ranking pari passu with Kingspan’s existing senior debt, and have a fixed coupon rate of 5.25 per cent, which has been hedged to give the Company a mix of fixed and floating interest rates.
The proceeds of the placement, which have in part been converted into sterling, will be used to repay existing bank borrowings and for general corporate purposes.
The placement has been facilitated and arranged by the Royal Bank of Scotland plc (RBS) acting as placement agent, with RBS and HSBC Bank plc jointly co-ordinating the swap auction.
"We are pleased with the very positive response to the placement from an important capital market. The transaction was three times over-subscribed, and due to the strong investor demand the placing was increased from $125 million to $200 million," said Kingspan's chief financial officer Geoff Doherty.
"It improves our capital structure by lengthening our debt maturity profile at very competitive interest rates, and it affords Kingspan significant financing headroom as we seek to develop our business globally,” he added.
