8-K

CRH PUBLIC LTD CO 8-K Report (Dec 14, 2010)

Filed December 14, 2010For Securities:CRH

Summary

CRH Public Limited Company (CRH) has announced the early results of its cash tender offers for various series of its notes. The offers are being conducted by CRH America, Inc. and CRH plc, aiming to purchase up to $750 million in aggregate principal amount of certain notes and up to $50 million of other notes. As of the early tender deadline of December 13, 2010, a significant portion of the 6.95% Notes due 2012 had been tendered, with over 65% of the principal amount submitted for purchase. Investors who tendered their notes by the early deadline are eligible to receive a "Total Consideration," which includes an early tender premium of $30 per $1,000 principal amount. Those tendering after this deadline will receive a reduced amount. The company expects to make payments on December 29, 2010, with an early settlement date for a portion of the 6.95% Notes due 2012 already occurring. This tender offer is a strategic move by CRH to manage its outstanding debt obligations.

Key Highlights

  • 1CRH is conducting cash tender offers to repurchase its outstanding notes.
  • 2CRH America is offering to purchase up to $750 million of 6.95% Notes due 2012, 5.625% Notes due 2011, and 5.30% Notes due 2013 (with a sublimit for the 2013 notes).
  • 3CRH plc is offering to purchase up to $50 million of 6.40% Notes due 2033.
  • 4As of the early tender deadline (December 13, 2010), 65.71% of the 6.95% Notes due 2012 had been tendered.
  • 5Holders who tendered by the early deadline will receive a premium ($30 per $1,000 principal) as part of the "Total Consideration."
  • 6The tender offer will expire on December 28, 2010, unless extended.
  • 7Payment for accepted tendered notes is expected on December 29, 2010, with some 6.95% Notes due 2012 already settled early.

Frequently Asked Questions

The purpose of this tender offer is for CRH and its subsidiary CRH America to repurchase a portion of their outstanding debt obligations. This is a common strategy for companies to manage their capital structure, potentially reduce interest expenses, and refinance debt.

CRH America is offering to purchase up to $750 million aggregate principal amount of its 6.95% Notes due 2012, 5.625% Notes due 2011, and 5.30% Notes due 2013 (with a $50 million sublimit for the 2013 notes). CRH plc is offering to purchase up to $50 million aggregate principal amount of its 6.40% Notes due 2033.

Holders who validly tendered their notes before the early tender deadline (December 13, 2010) are eligible to receive the 'Total Consideration,' which includes an early tender premium of $30 per $1,000 principal amount. Holders who tender their notes after the early deadline will only receive the 'Tender Offer Consideration,' which is the Total Consideration minus the early tender premium.

The tender offer is scheduled to expire at 11:59 p.m., New York City time, on December 28, 2010, unless extended. Payment for the notes accepted for purchase is expected to be made on December 29, 2010, with an early settlement date already occurring for a portion of the 6.95% Notes due 2012.