CRH America, Inc, a wholly owned subsidiary of CRH plc, successfully priced its third US$ Global bond offering yesterday afternoon in New York.
The offering consists of 10-year and 5-year notes. The US$1.25 billion 10-year notes were priced at a spread of 1.3% above the 10-year US Treasury and have a coupon of 6.0%. The US$500 million 5-year notes were priced at 0.92% above the 5-year US Treasury and have a coupon of 5.625%.
Due to strong investor demand, the total offering was increased from US$1.25 billion. Over 130 institutional investors from North America and Europe participated in the transaction. The proceeds of the offering are intended to be used to refinance short-term bank debt, potentially including debt used to finance the recent purchase of APAC, and for general corporate purposes which may include acquisitions. The notes are registered with the Securities and Exchange Commission (SEC) and are intended to be listed on the NYSE.
Myles Lee, Finance Director at CRH said: “CRH’s previous US$ global bond offerings, both of which raised US$1 billion, were completed in March 2002 and September 2003. We are delighted with the very strong investor response to this third offering of US$1.75 billion which enables CRH to extend its debt maturity profile and to expand its investor base.”