James Hardie rallies after pricing $1.7b debt offering
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More news: James Hardie shares advanced in morning trade after the building products manufacturer priced $1.7 billion in senior secured notes to support its buyout of NYSE-listed AZEK.
James Hardie shares were up 4.7% to $38.42 at 10:45am AEST, having retreated around 23% since the turn of the year.
James Hardie prices $1.7b debt offering for Azek buyout
The news: Building products manufacturer James Hardie has announced the pricing of $1.7 billion in senior secured notes to help fund its $14 billion acquisition of New York-listed outdoor living products maker AZEK.
The numbers: James Hardie will issue $700 million worth of senior secured notes due in 2031, with an interest rate of 5.875%. The company will also issue $1 billion worth of notes due in 2032, with an interest rate of 6.125%.
The context: James Hardie, which announced the debt raise on Tuesday, said it plans to use the proceeds from the private offering to support the AZEK acquisition, repay and terminate AZEK's existing credit facility, and pay related transaction fees and expenses.
The source: ASX
