Nuplex raises $US105m in American private placement
BUSINESSDESK: Nuplex Industries, the specialty chemicals maker, raised $US105 million by tapping the US private placement market and will use the funds to refinance a facility used to acquire Viverso last year.
The notes mature in 2019 and carry a coupon of 6.125%, the Auckland-based company said. The US dollar proceeds will be converted into euros via a cross currency swap.
Nuplex lifted its debt facilities by about $A100 million to $A300 million to finance the acquisition after agreeing to buy Bayer MaterialScience’s Viverso for 75 million euros in October, adding resins production in Germany.
The company also said it will redeem its $52.6 million of capital notes on September 15, using funds from existing bank facilities. Following the redemption, Nuplex’s total debt facilities will be the $US105 million of notes and the existing $A200 million bank facilities.
“By raising funds in the USPP market we have been able to access long term, fixed price debt which balances and strengthens our overall funding position by extending our maturity profile and diversifying our funding sources,” chief financial officer Ian Davis said.
Shares of Nuplex were unchanged at $2.54 and have gained 11% this year. The stock is rated "hold" based on the consensus of six analysts polled by Reuters.