October 24, 2017 / 10:49 PM / a year ago

Australia's Boral raises $950 mln in bonds to repay acquisition loan

SYDNEY, Oct 25 (Reuters) - Australia’s largest supplier of building materials, Boral Ltd, said on Wednesday it had raised $950 million in bonds to repay a loan that funded its Headwaters acquisitions in the United States last year.

The company said the money raised and “other funds” would be used to repay in full a bridge loan facility for it’s $1.8 billion acquisition of Headwaters, aimed at doubling the size of its U.S. business.

The issue is split into a $450 million tranche maturing in 2022 that pays a fixed coupon of 3 percent, and a second tranche of $500 million bonds maturing in 2028 that pay 3.5 percent.

“The offering is consistent with our strategy of diversifying our funding sources and lenghtening the average tenor of our borrowings,” Chief Financial Officer Ros Ng said in a statement to the exchange.

The guaranteed bonds are rated BBB and Baa2 by Standard and Poor’s and Moody’s, respectively. (Reporting by Paulina Durán; Editing by Andrew Hay)

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