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DS Smith announces successful debt issuance

By Michele Maatouk

Date: Thursday 20 Jul 2017

DS Smith announces successful debt issuance

(ShareCast News) - Following its proposed acquisition of Interstate Resources and associated equity and debt financing back in June, DS Smith has announced a successful debt issuance on Thursday.
The FTSE 250 packaging company has successfully launched and priced €750m of notes due 26 July 2024 with a coupon of 1.375% and £250m of notes due 26 July 2029 with a coupon of 2.875%.

The proceeds of the issue will be used to refinance the £400m bridge facility entered into at the time of the transaction, along with other DS Smith existing facilities, significantly extending the tenure of the company's borrowings.

Group finance director Adrian Marsh said: "We are delighted by the response to the acquisition and our debt issuance. The pricing reflects the group's prospects, investment grade credit metrics and significantly lengthens our maturity profile at highly competitive rates, providing long term, attractive financing for the business."

At 1530 BST, the shares were up 0.5% to 484.60p.

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