By Lisa Kerner
Charlotte, N.C., Nov. 25 - Davis Service Group plc agreed to issue $259 million of long-term senior guaranteed notes in a private placement to U.S. investors, according to a company news release.
According to Davis Service, $30 million of the notes mature in December 2016, $129 million mature in December 2019 and $100 million mature in December 2021.
Proceeds will be used to repay borrowings under the company's revolving credit facilities.
The notes have been swapped into euros at an average interest rate of 5.219%, the release said.
Davis Service said it will also issue £25 million of sterling senior guaranteed notes due December 2019 at 5.74%.
"The group is now much less dependent on the banking market for its future debt requirements," Davis Service finance director Kevin Quinn said in the release.
"With the existing U.S. private placement notes, we have £303 million of funding with maturities between May 2016 and December 2021 at an average fixed rate of 4.9% before tax or 3.6% post tax."
Davis Service is a textile maintenance business based in London.
| Issuer: | Davis Service Group plc
|
| Issue: | Senior guaranteed notes
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| Amount: | $259 million
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| Maturities: | December 2016 (for $30 million); December 2019 (for $129 million); December 2021 (for $100 million)
|
| Distribution: | Private placement
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