Ibstock has completed the refinancing of its March 2023 £215m revolving credit facility, it said on Wednesday, diversifying its credit sources at attractive rates, while also achieving a significant extension of its debt maturity profile.
The FTSE 250 brickmaker said the existing facility had been replaced with the issue of £100m of private placement notes from Pricoa Private Capital, with maturities of between seven and 12 years at an average total cost of funds of 2.19%, and a £125m revolving credit facility with a syndicate of five banks.
It said the facility was for an initial four years, with a one year extension option, at a margin of between 1.60% and 2.60%, and also included an additional £50m uncommitted accordion.
“Based on current leverage, the group will pay interest under the revolving credit facility initially at a margin of 1.60%, compared to 2.00% under the previous agreement,” Ibstock’s board said in its statement.
“These new facilities provide an efficient, long-term funding platform to support the Group’s investment for growth.”
At 0806 GMT, shares in Ibstock Group were down 1.18% at 200.6p.
