(Alliance News) - Inchcape PLC on Monday priced a new bond offering to help pay for a recent acquisition in South America.
The London-based automobile distributor said the new EUR350 million new bond offering will mature in June 2028 and carry a coupon of 6.5%. It is expected to be given an investment grade rating by Moody's of Baa2.
Inchcape said it will use the proceeds from the bond issue to repay the bridge facility that it took out to fund the GBP1.3 billion acquisition of Derco in January.
Derco is Latin America's largest independent automotive distributor, with operations in Chile, Peru, Colombia, and Bolivia. It is based in Quilicura, Chile, northwest of Santiago.
Chief Executive Officer Adrian Lewis said: "We are pleased with the success of our debut public bond issue, which ensures that Inchcape can maintain a stable, long term capital structure to support our future investment in growth. The high level of interest shown by investors across Europe emphasizes their confidence in our differentiated market position, our strong financial profile and our exciting growth prospects."
Inchcape shares were up 1.0% to 792.50 pence each on Monday morning in London. It has a market capitalisation of GBP3.27 billion.
By Tom Budszus, Alliance News reporter
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Inchcape (INCH)