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Tue September 22 2020

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Kingspan raises funds for expansion

11 Aug 11 Kingspan, the manufacturer of building components and panels, has completed a US$200m private placement of 10 year senior loan notes to help reduce its debt and fund global expansion.

Such was the demand, Kingspan placed more notes than initially planned.

Chief financial officer Geoff Doherty said: "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 $125m to $200m. 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."

The notes are unsecured, ranking pari passu with Kingspan's existing senior debt, and have a fixed coupon rate of 5.25%, which has been hedged to give the company a mix of fixed and floating interest rates.

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