Woodie’s DIY owner raises €160m in US private placement

Grafton CEO Gavin Slark
Grafton CEO Gavin Slark

Grafton Group has raised €160m through the issue of unsecured senior notes in the US private placement market.

The Merchanting and DIY group behind the Woodie’s DIY chain said that the proceeds will be used to refinance existing debt and for “general corporate purposes”. 

Maturity of debt is ten and twelve years, with an average annual coupon of 2.5pc.

In a statement to the stock exchange today, Grafton said that the notes, which will be issued in September, will diversify the group’s sources of funding by re-entering the US private placement market, extend the maturity profile of debt and provide greater certainty over the cost of debt for an extended period at attractive rates.

Including finance leases, Grafton had €354m of total finance liabilities at the end of 2017, with just €59m due within the next four years. According to Davy analysts, this placement therefore materially extends the maturity profile of Grafton’s debt and provides greater certainty over the cost of debt for an extended period at “attractive rates”.

Grafton’s revenue rose 8.6pc to £1.45bn (€1.63bn) in the first six months of this year, boosted by the good weather. On a constant currency basis, it was 7.9pc higher. Like-for-like group revenue rose 3.8pc.

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