Quarter of a billion pound fundraise for Building products group

Construction products supplier SIG plc has raised £257m (€300m) via senior secured notes, which will be issued around 18 November.

The proceeds from the fundraise will be used to repay the Sheffield-based company’s existing private placement notes, credit facilities and fund cash on the group’s balance sheet for general corporate purposes.

The business, which reported a rise in both sales and profit during the third quarter of its financial year ending 31 December 2021, added that in addition to the pricing of the senior secured notes it has entered a new revolving credit facility agreement that provides borrowings of up to £50m witha group of relationship banks.

It noted that this new credit facility would initially be undrawn.

Steve Francis, chief executive officer, said: “We are delighted with the response we have received from investors. The success of this transaction enables us to refinance our existing facilities well ahead of their maturity dates and on more attractive terms. Together with our New Revolving Credit Facility, the Notes further improve the Group’s financial flexibility by extending the maturity profile of the Group’s borrowings and increasing its available liquidity. This will provide a strong base from which to drive forward our “Return to Growth” strategy, which has delivered notable improvements in growth and profitability to date, and which we are increasingly confident will continue to deliver value for all stakeholders in the near and longer term.

“On behalf of the Board, I wish to thank our bond investors for their support, and for the confidence they have shown in the Group’s strategy and outlook.”