8-K

CRH PUBLIC LTD CO 8-K Report (Dec 13, 2010)

Filed December 13, 2010For Securities:CRH

Summary

CRH plc (CRH) announced on December 13, 2010, the details of its previously announced cash tender offers for various series of its and its subsidiary CRH America's outstanding notes. The offers aim to purchase up to a total of $750 million principal amount of certain notes by CRH America and up to $50 million principal amount of another series of notes by CRH. This move suggests CRH is actively managing its debt structure, potentially seeking to refinance or reduce outstanding obligations. The company has set the Reference Yield, Total Consideration, and Tender Offer Consideration for each series of notes, with specific pricing and purchase limits outlined. A key element for investors is the early tender premium, which incentivizes holders to submit their notes before a specific deadline to receive a higher price. The tender offer has a set expiration date, and the settlement for purchased notes is scheduled for late December 2010. Investors should carefully review the offer details, including the pricing and deadlines, to determine if tendering their notes is beneficial.

Key Highlights

  • 1CRH plc and its subsidiary CRH America launched cash tender offers for outstanding notes.
  • 2CRH America aims to purchase up to $750 million in aggregate principal amount of its 6.95% Notes due 2012, 5.625% Notes due 2011, and 5.30% Notes due 2013.
  • 3CRH aims to purchase up to $50 million in aggregate principal amount of its 6.40% Notes due 2033.
  • 4The company announced the Reference Yield, Total Consideration, and Tender Offer Consideration for each series of notes.
  • 5An early tender premium of $30 per $1,000 principal amount is offered for notes tendered and accepted before the early tender deadline.
  • 6The tender offer is set to expire on December 28, 2010, with settlement dates expected in late December 2010.
  • 7Several major financial institutions, including J.P. Morgan Securities LLC and UBS Securities LLC, are serving as dealer managers for the tender offer.

Frequently Asked Questions

The purpose of these cash tender offers is for CRH plc and its subsidiary CRH America to purchase specific series of their outstanding notes. This is a debt management strategy, likely aimed at refinancing debt, managing interest expenses, or adjusting the company's capital structure.

The 'Total Consideration' is the higher price offered to noteholders who validly tender and do not withdraw their notes before the Early Tender Time. It includes an 'early tender premium' of $30 per $1,000 principal amount. The 'Tender Offer Consideration' is the price offered to noteholders who tender their notes after the Early Tender Time but before the offer's expiration; it is the Total Consideration minus the early tender premium.

The Early Tender Time (for receiving the Total Consideration) was 5:00 p.m., New York City time, on December 13, 2010. The Tender Offer is set to expire at 11:59 p.m., New York City time, on December 28, 2010. Investors should note that notes tendered after the Early Tender Time will not receive the early tender premium.

Payment for accepted notes is expected on December 29, 2010 (the 'Final Settlement Date'), with an earlier settlement date of December 14, 2010, for a portion of the 6.95% Notes due 2012. In addition to the consideration, holders will be paid accrued and unpaid interest up to the applicable settlement date.