The Grafton Group plc, which has merchanting and DIY operations in the UK, Ireland and mainland Europe, revealed to refinance its debt by raising funds using 10 and 12-year bonds with 2.5% yield.
The group has agreed to raise €160 million (£144 million) through an issue of unsecured senior notes in the US Private Placement market with 10 and 12-year maturities at an average annual coupon of 2.5%.
The notes will be issued in September 2018 and the proceeds received will be used to refinance existing debt and for general corporate purposes. The issue of these notes 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.
Grafton is the largest DIY retailer in Ireland with its Woodie’s DIY chain of 35 stores. It also operates the Selco, Buildbase, Plumbase and Leyland SDM chains as part of its merchanting business. At the end of 2017, Grafton had a net debt of €70.4million (£62.9million) - down nearly 35% on the previous year..