12th Nov 2013 08:48
LONDON (Alliance News) - Construction and infrastructure company Balfour Beatty PLC Tuesday launched a GBP250 million convertible bond offering that it will use to pay off some short-term debt, a move that will further diversify its debt after its dollar-bond placing earlier in the year.
The company said the senior, unsecured convertible bond will be due in 2018, and the underlying shares represent about 9.9% of its outstanding share issue.
Balfour said it will use the proceeds to repay some of its revolving credit facility as well as for general corporate purposes.
Earlier this year, the company issued a USD250 million bond through a private placing in the US.
It said it was launching its latest bond to "take advantage of currently favourable convertible market conditions to continue diversifying its funding sources, lock in long-term financing at attractive terms and provide additional liquidity."
The news hit its shares as it would have a diluting effect when the bonds convert. The stock was down 4.9% at 269.5 pence early Tuesday, one of the biggest declines on the FTSE 250.
By Steve McGrath; [email protected]; @SteveMcGrath1
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