Flooring firm raises €500 million after ‘very strong demand’ from investors

Victoria, the Kidderminster-based floorings firm, says it has raised €500 million thought a bond issue, after the offer was oversubscribed by more seven times.

The firm yesterday said it wanted to raise €350 to help fund acquisitions, but that the amount of the offer was increased following “very strong demand”.

Geoff Wilding, executive chairman of Victoria, said: “We are delighted with the level of support today from bond investors. The offer was heavily oversubscribed, enabling us to not only raise the targeted €250 million to help fund acquisitions we expect to complete in the near-term, but also refinance €250 million of our existing 2024 bonds – extending the duration of our debt to 2026 whilst significantly lowering the interest rate to a very attractive 3.625%.

“The demand from investors was reinforced by the group’s very strong trading over the last 12 months, which saw record operating profits despite the material impact of the lockdowns in the June quarter. The reorganisation and investment undertaken by the Group in 2019 has, as planned, delivered a sustainable margin expansion of more than 300 bps and the financial outlook for the group remains strong.

“The board wishes to thank bond investors for their support and confidence, which is an important contribution to the group as it continues to execute its strategy to create shareholder value.”