Wolseley completes £820m credit deal
Published: 04 August, 2011
LEAMINGTON SPA: Builders' merchant Wolseley has agreed to syndicate off two five-year revolving credit facilities totalling £820m.
Wolseley, with sales of more than £13bn a year, said the facilities will replace existing committed bank facilities of £1.6bn which were due to mature on or before August 2013.
The national merchant said the move to current market pricing will save it approximately £12m a year. However, unamortised arrangement fees of £7m will be written off this year as a consequence of cancelling the surplus facilities.
John Martin, chief financial officer at Wolseley, said: "The innovative approach of completing loan agreements simultaneously in two jurisdictions enabled Wolseley's relationship banks to participate and allowed Wolseley to take advantage of attractive pricing. We are delighted with the strong support demonstrated by all our relationship banks. These facilities will support the group's growth plans for the foreseeable future. The high level of demand for the new facility is indicative of the quality of Wolseley's credit."
Following the syndication the total committed facilities available to the group amount to approximately £1.6bn. The group's net debt stood at £824m on 30 April.
The European Facility was co-ordinated by Barclays, Danske and Crédit Agricole and the US facility was lead by Bank of America Merrill Lynch and PNC.