James Hardie announces $1.7b debt raise for AZEK acquisition
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The news: Building products group James Hardie expects to issue $1.7 billion in debt to help fund its proposed acquisition of NYSE-listed outdoor living products maker The AZEK Company.
The numbers: Shares in James Hardie were trading 1.03% higher at $36.31 soon after the market opened.
The context: The senior secured notes will be issued in one or more tranches in a private placement and will be secured by “substantially the same collateral as James Hardie’s existing first lien obligations under its existing senior secured credit facilities”, the company said in an ASX announcement.
On Monday, James Hardie said it had secured new senior secured credit facilities worth $3.5 billion from 30 participating banks.
Funding from the credit facilities, cash on hand and debt issuance will be used to acquire AZEK and to repay and terminate its existing credit facility. If the acquisition does not eventuate, then James Hardie will repay the debt at its initial issue price.
The source: ASX
