James Hardie shares rise on new debt facilities
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More news: James Hardie shares lifted after the building products manufacturer announced new credit facilities to help fund its $14 billion acquisition of New York-listed The AZEK Company.
James Hardie shares were up 3% to $36.49 at 10:55am AEST, having retreated nearly 30% since the turn of the year.
James Hardie syndicates new credit facilities for AZEK buyout
The news: Building products group James Hardie has secured the syndication of new credit facilities to support its planned $14 billion acquisition of NYSE-listed outdoor living products maker The AZEK Company.
The numbers: James Hardie said it syndicated new senior secured credit facilities totalling $3.5 billion, supported by 30 participating banks. This comprises a $1 billion revolving credit facility and a $2.5 billion senior secured loan.
The context: James Hardie shares shed 14.5% in a single session after the announcement of the acquisition in March.
The company said it will issue cash plus shares to AZEK shareholders, who will own 26% of the combined company. It will also list its shares on the NYSE after completion of the deal, which will prompt a USD500 million ($775 million) share buyback.
What they said: "We are pleased with the strong show of support that this syndication received from new and existing investors and appreciate their partnership," said James Hardie's chief financial officer Rachel Wilson.
"Their participation in these new credit facilities underscores the market's confidence in our value proposition and conviction in our future," she said.
The source: ASX
