19th Oct 2005 11:05
Wolseley PLC19 October 2005 NOT FOR RELEASE, DISTRIBUTION OR PUBLICATION IN WHOLE OR IN PART IN OR INTO THE UNITED STATES. Wolseley plc Record $1.2 billion Private Placement Wolseley plc, the world's largest distributor of heating and plumbing productsto professional contractor markets and a leading supplier of building materials,today announces that it has, in principle, raised $1.2 billion through a privateplacement of fixed and floating senior unsecured notes (the "Notes"). Thetransaction will refinance existing facilities that are due to mature within thenext two years. Following strong investor demand, the transaction was over double the Company'sinitial target, having expanded from $500 million to $1,200 million, making itthe largest traditional private placement financing in recent history. There are eight tranches, six at fixed rates, ranging from 3 to 15 years and twofloating rates notes, for 3 and 7 years. All the tranches have bulletrepayments. Thirty-one institutions subscribed to the transaction, which is expected toclose on 16 November 2005, subject to investor due diligence. This transaction significantly diversifies the Group's debt funding away frombank debt and greatly increases the maturity profile of the Group's debtfunding. The proceeds will be used principally to fund the Group's workingcapital and refinance existing debt facilities. Commenting on the announcement, Steve Webster, Group Finance Director, said: "We are delighted that our placement has been so well received by this newinvestor base. Our strategy to grow the business in fragmented markets bothorganically and through acquisition has delivered strong returns over severalyears. The placement allows us to diversify our debt funding away from bankfinance. We view this market as an attractive source of long term debt capital.Investors in this market take a long term view of the growth prospects of thecompany and we are delighted in their positive response to our initialoffering." The private placement was jointly arranged by Banc of America Securities and RBSGreenwich Capital. The Notes will be sold only to the limited number of institutions referred toabove in reliance upon an exemption from the registration requirements of theU.S. Securities Act of 1933, as amended (the "Securities Act"). The Notes willnot be registered under the Securities Act and, unless so registered, may not beoffered or sold in the United States except pursuant to an exemption from, or ina transaction not subject to, the registration requirements of the SecuritiesAct and applicable state securities laws. This press release shall not constitute or form part of an offer to sell or thesolicitation of an offer to buy, any securities in the United States or in anyother jurisdiction nor shall there be any sale of the Notes in any jurisdictionin which such offer, solicitation or sale would be unlawful prior to theregistration or qualification under the securities laws of such jurisdiction.Wolseley is not making a public offering of the Notes in the United States or inany other jurisdiction. In the United Kingdom, this press release does not constitute an invitation orinducement to participate in the offering of the Notes. - ends - ENQUIRIES: Investors/Analysts: Guy Stainer 0118 929 8744Head of Investor Relations 07739 778 187 Press:Penny Studholme 0118 929 8886Director of Corporate Communications 07860 553834 Brunswick 020 7404 5959Andrew FenwickDeborah Fairbrass There will be an analyst/investor conference call today at 12:00 (BST).The dial-in details are:UK dial-in 01452 561 263International dial-in +44 1452 561 263 A replay facility will be available until 21st October 05 by dialling:UK and international +44 (0) 1452 55 00 00Passcode 1642696# # # # Notes to Editors: Wolseley plc is the world's largest specialist distributor of plumbing andheating products to professional contractors and a leading supplier of buildingmaterials in North America, the UK and Continental Europe. Group sales for theyear ended 31 July 2005 were approximately £11.3 billion and operating profit,before goodwill, was £721 million. Wolseley has around 60,000 employeesoperating in 14 countries namely: UK, USA, France, Canada, Ireland, Italy, TheNetherlands, Switzerland, Austria, Czech Republic, Hungary, Luxembourg, Belgiumand Denmark. Wolseley is listed on the London and New York Stock Exchanges (LSE:WOS.L, NYSE: WOS) and is in the FTSE 100 index of listed companies. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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