Issue of Debt
Issuance of c.US$100 million of US Private Placement loan notes
Vesuvius plc, a global leader in molten metal flow engineering, announces the issuance of US$60 million and €30 million of US Private Placement loan notes ("the Notes").
Proceeds from the issue were received on 3 December 2013 and used to reduce drawings under the Group's existing committed bank facilities. The Notes, which all carry a fixed rate of interest, were issued in four series: €15 million at 3.46% maturing in December 2021, US$30 million at 4.61% maturing in December 2023, €15 million at 3.93% maturing in December 2025 and US$30 million at 4.96% maturing in December 2028. The weighted average interest rate and maturity on the Notes will be 4.34% and 11.5 years respectively.
This placement further strengthens the Group's balance sheet by diversifying its sources of funding and lengthening its debt maturities.
Chris O'Shea, Chief Financial Officer, commented:
"We are pleased to have obtained this longer term debt financing on attractive terms. The healthy investor demand we experienced reflects the strength of our current position and prospects. Our total committed debt facilities are now the equivalent of some £639 million, with a good mix of maturities out to 2028. With net debt at 30 June 2013 of £272.5 million, we remain very well financed."
For further information please contact:
François Wanecq, Chief Executive
+44 (0) 207 822 0000
Chris O'Shea, Chief Financial Officer
+44 (0) 207 822 0000
Maddy Cox-Smith, Investor Relations Manager
+44 (0) 207 822 0016
Tony Harrison, Group Head of Corporate Finance
+44 (0) 207 822 0000
John Olsen/Vicky Watkins
+44 (0) 203 128 8100
About Vesuvius plc:
Vesuvius is a global leader in molten metal flow engineering, developing, manufacturing and marketing mission-critical ceramic consumable products and systems in demanding applications, primarily in the global steel and foundry industries.
Forward looking statements
This announcement contains certain forward looking statements which may include reference to one or more of the following: the Group's financial condition, results of operations, cash flows, dividends, financing plans, business strategies, operating efficiencies or synergies, budgets, capital and other expenditures, competitive positions, growth opportunities for existing products, plans and objectives of management and other matters.
Statements in this announcement that are not historical facts are hereby identified as "forward looking statements". Such forward looking statements, including, without limitation, those relating to the future business prospects, revenue, working capital, liquidity, capital needs, interest costs and income, in each case relating to Vesuvius, wherever they occur in this announcement, are necessarily based on assumptions reflecting the views of Vesuvius and involve a number of known and unknown risks, uncertainties and other factors that could cause actual results, performance or achievements to differ materially from those expressed or implied by the forward looking statements. Such forward looking statements should, therefore, be considered in light of various important factors that could cause actual results to differ materially from estimates or projections contained in the forward looking statements. These include without limitation: economic and business cycles; the terms and conditions of Vesuvius' financing arrangements; foreign currency rate fluctuations; competition in Vesuvius' principal markets; acquisitions or disposals of businesses or assets; and trends in Vesuvius' principal industries.
The foregoing list of important factors is not exhaustive. When considering forward looking statements, careful consideration should be given to the foregoing factors and other uncertainties and events, as well as factors described in documents the Company files with the UK regulator from time to time including its annual reports and accounts.
You should not place undue reliance on such forward looking statements which speak only as of the date on which they are made. Except as required by the Rules of the UK Listing Authority and the London Stock Exchange and applicable law, Vesuvius undertakes no obligation to update publicly or revise any forward looking statements, whether as a result of new information, future events or otherwise. In light of these risks, uncertainties and assumptions, the forward looking events discussed in this announcement might not occur.