(Alliance News) - Victoria PLC on Thursday said it has priced its offering of EUR170 million 5.25% fixed rate senior secured notes due 2024.
The notes have been priced at 105.00%, with net proceeds to go toward fully repaying the flooring company's outstanding senior bank debt. Because of this, the refinancing is not expected to increase net debt, though this is subject to fees and expenses.
Victoria has its headquarters in Worcestershire and makes and distributes carpets, tiles, underlay, and other flooring products. It said the notes are to be issued as additional notes under the indenture from July 2019 which governs its outstanding EUR330 million senior secured notes due 2024.
Additionally, the new EUR170 million notes will be Victoria's general, senior obligations and are to be guaranteed by some of its subsidiaries. Interest is to be paid semi-annually and in arrears.
The note offering is set to close with the notes to be issues on or arounnd February 3, 2020.
Chair Geoff Wilding said: "Since our successful bond issue in July last year, Victoria's bond price has traded strongly higher, which we believe reflects Victoria's solid interim trading results announced in November and the financial outlook for the group.
"We were delighted with the level of support today from bond investors. The issue was again heavily oversubscribed, enabling us to issue the bonds at a 5% premium to their face value, and we thank them for their support and confidence in Victoria's strategy and potential."
Following the issue, which is leverage neutral, Victoria Wilding said the firm is "fully financed with long-dated, fixed rate, flexible debt".
Shares in Victoria were down 0.5% at 433.00 pence in London on Friday.
By Anna Farley; annafarley@alliancenews.com
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Victoria (VCP)