US PRIVATE PLACEMENT & FUNDING FOR LENDING SCHEME
KIER GROUP PLC
US PRIVATE PLACEMENT AND
FUNDING FOR LENDING SCHEME LOAN
Kier Group plc ("Kier") is pleased to announce its successful issue of notes in the US private placement market as well as having secured a loan issued under the UK Government's Funding for Lending Scheme ("the FfLS"), arranged by Lloyds Bank Commercial Banking ("Lloyds").
On 20 December 2012, Kier issued 7-year and 10-year notes in aggregate principal amounts of £45 million and US$28 million in four series, with coupons ranging from 4.2% to 4.8% per annum ("the Notes"). The Notes will be used to refinance Kier's existing £17 million 6.4% notes and US$22 million 6.2% notes, which will mature on 19 February 2013, and for continued investment in Kier's property development pipeline.
On 11 January 2013, Kier entered into a £30 million unsecured 4-year bilateral loan with Lloyds, which was provided under the FfLS and has been drawn down in full.
The FfLS was introduced by the Government to stimulate investment in UK infrastructure and the loan provides Kier with competitively priced additional funding to be used in connection with its infrastructure and related projects.
Haydn Mursell, Group Finance Director of Kier, said:
"We are delighted with the strong support shown by investors for our private placement, which confirms Kier's solid financial position and the market's confidence in the Group's future prospects.
The private placement and the FfLS loan increase the Group's available funds and have been secured at very competitive pricing levels. They also diversify the Group's sources of funding.
The FfLS clearly indicates that the UK Government is committed to supporting infrastructure projects as a means of moving the UK economy out of recession. As a result of this loan and the projects it will finance, our supply chain will also benefit, demonstrating the FfLS' importance to the UK in general. We are also grateful to Lloyds for its continued support to Kier and the construction sector."
Ends
Contacts
Paul Sheffield, Chief Executive, Kier Group 01767 640 111
Faeth Birch, RLM Finsbury 020 7251 3801
Notes to editors:
About Kier
Kier Group is a leading construction, services and property group specialising in building and civil engineering, support services, public and private house building, property development and the Private Finance Initiative.
For more information contact the Kier Group communications department on: 01767 640 111 or visit www.kier.co.uk
This information is provided by RNS
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