8-K

CRH PUBLIC LTD CO 8-K Report (Sep 24, 2003)

Filed September 24, 2003For Securities:CRH

Summary

CRH Public Limited Company (CRH) announced the successful completion of a US$1 billion global bond offering through its wholly owned subsidiary, CRH America, Inc. This offering, which was upsized from US$600 million due to strong investor demand, consists of US$700 million in 10-year notes with a 5.3% coupon and US$300 million in 30-year notes with a 6.4% coupon. The notes were priced at spreads of 1.1% and 1.3% above the respective US Treasuries, attracting over 100 institutional investors from North America and Europe. The proceeds from this bond issuance are earmarked for partially financing the acquisition of certain operations of Cementbouw, expected to close in Q4 2003, and for general corporate purposes, which may include future acquisitions. This second successful global bond offering, following their debut in March 2002, allows CRH to extend its debt maturity profile and broaden its investor base, demonstrating continued access to capital markets and financial flexibility.

Key Highlights

  • 1CRH successfully completed a US$1 billion global bond offering via its subsidiary CRH America, Inc.
  • 2The offering was upsized from US$600 million to US$1 billion due to strong investor demand.
  • 3The issuance includes US$700 million in 10-year notes (5.3% coupon) and US$300 million in 30-year notes (6.4% coupon).
  • 4Proceeds will partially fund the acquisition of Cementbouw operations and support general corporate purposes, including potential acquisitions.
  • 5The bond offering attracted over 100 institutional investors from North America and Europe.
  • 6This issuance extends CRH's debt maturity profile to 30 years and expands its investor base.
  • 7Banc of America Securities LLC, Citigroup, and JPMorgan acted as joint book-runners.

Frequently Asked Questions

This US$1 billion global bond offering is significant as it demonstrates CRH's strong access to capital markets and investor confidence. The proceeds will help fund a key acquisition and provide flexibility for future growth, while extending the company's debt maturity profile and broadening its investor base.

The funds raised will be used to partially finance the acquisition of certain operations of Cementbouw, which is anticipated to close in the fourth quarter of 2003. Additionally, the proceeds will be utilized for general corporate purposes, which may include other potential acquisitions.

The offering consists of two tranches: US$700 million of 10-year notes with a coupon of 5.3%, priced at a spread of 1.1% above the 10-year US Treasury, and US$300 million of 30-year notes with a coupon of 6.4%, priced at a spread of 1.3% above the 30-year US Treasury.

The offering was upsized from US$600 million to US$1 billion due to strong investor demand, indicating a healthy appetite for CRH's debt securities among institutional investors.