Wolseley FD hails “innovative” £820m refinancing

PLUMBING GIANT Wolseley has completed what its finance director has described as “innovative” refinancing.

Two five and a quarter-year revolving credit facilities, totaling £820m, were renegotiated simultaneously.

The facilities will be used for general business purposes and replace £1.6bn in facilities due to expire on or before August 2013.

Renegotiating is expected to save Wolseley £12m per year.

“The innovative approach of completing loan agreements simultaneously in two jurisdictions enabled Wolseley’s relationship banks to participate and allowed Wolseley to take advantage of attractive pricing,” said John Martin, chief financial officer of Wolseley.

We are delighted with the strong support demonstrated by all our relationship banks. These facilities will support the group’s growth plans for the foreseeable future. The high level of demand for the new facility is indicative of the quality of Wolseley’s credit.”

The new facilities consist of a European facility of €750m (£654m) and a US facility of US$270m (£165m).

Arrangement fees of £7m will be written off this year due to cancelling the existing facilities.

Wolseley’s share price has climbed 3p to 1,748p in this morning’s trading.

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