(Alliance News) - Victoria PLC on Monday said it intends to offer EUR330 million in aggregate principal amount of senior secured notes due 2024.
The manufacturer of carpets said the net proceeds will be used to repay existing bank debt and for general corporate purposes. As such, the issuance of the notes will not increase net debt.
The interest rate, offering price and other terms will be determined at the time of pricing of the offering, Victoria said.
In a separate statement, the AIM-listed company said it believes that the timing is suitable for a bond issue, as like-for-like revenue growth continued in both of its soft flooring and ceramic tile businesses and margins have increased by more than 100 basis points compared to the year ended March 30.
"The notes, which will have a five-year term and fixed rate of interest, will sit alongside other long-term credit facilities provided by a number of relationship banks, who continue to provide support to the business," Victoria said in a statement Monday.
It added: "The company believes that the bond market, which offers a deep additional pool of funding, and the terms of the notes, which are customary for an issuance of this nature, will allow it to maintain operational flexibility and support its long-term growth strategy."
Victoria shares closed 5.3% higher on Monday in London at 500.00 pence each, giving it a market capitalisation of GBP627 million.
Victoria (VCP)