James Hardie (ASX:JHX) Syndicates $3.5B in New Credit Facilities
New Credit Facilities Syndicated
James Hardie Industries plc has successfully syndicated new senior secured credit facilities totaling $3.5 billion. The syndication received broad support from 30 participating banks, providing a $1 billion revolving credit facility and a $2.5 billion senior secured Term Loan A split between a $750 million 3-year tranche and a $1.75 billion 5-year tranche.
Transaction with AZEK
The new credit facilities will support James Hardie’s planned merger with The AZEK Company Inc. Existing bridge facility commitments related to the transaction were reduced from $4.3 billion to $1.7 billion. The facilities are priced based on Term SOFR rates, with an interest rate swap agreement in place to fix the 3-month SOFR at 3.79% on $1 billion notional through June 2028, enhancing rate certainty and reducing interest expenses.
Executive Comments
Rachel Wilson, CFO of James Hardie, stated, “We are pleased with the strong show of support that this syndication received from new and existing investors and appreciate their partnership. Their participation in these new credit facilities underscores the market’s confidence in our value proposition and conviction in our future.”
Motley Fool contributor Kiarra Jackson has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
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