Grafton Group plc (“Grafton”), the builders merchanting and DIY Group with operations in the UK, Ireland and Belgium, has launched a 5.5% Sterling Retail Bonds due 2020 (“the Bonds”), which will be issued by its wholly owned subsidiary Grafton Group Finance plc (“the Issuer”) and guaranteed by Grafton and certain of Grafton’s subsidiaries (together “the Guarantors”).
The Group could be set to raise up to €50m.
The Bonds bear a fixed interest rate of 5.5% per annum and will be payable semi-annually to holders on 15 January and 15 July each year.
Grafton didn’t comment on the amount of new financing it thinks it could raise from this move, but industry sources suggest the group could realise anything up to €50m in fresh funding.
The Bonds are available for purchase in the period from Monday 24 June 2013 until noon on Monday 8 July 2013, or such earlier date as agreed by the Issuer, Grafton and the Manager and announced via a Regulatory Information Service.
The minimum initial investment is £2,000 and the Bonds can be bought and sold at their face value of £1,000 plus increments of £100 in excess of £1,000 thereafter.
The Bonds are also expected to be listed on the UK Listing Authority’s Official List and admitted to trading on the London Stock Exchange’s regulated market and through the electronic Order Book for Retail Bonds.
Investec Bank plc is acting as Manager on this issue.
Gavin Slark, Chief Executive Officer, Grafton Group plc commented: “The Group is pleased to launch its first listed retail bond as part of its strategy of diversifying its sources of funding and extending the maturity profile of its debt.”