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Nuplex raises US$105M in US private placement

Monday 18th June 2012

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Nuplex Industries, the specialty chemicals maker, raised US$105 million by tapping the US private placement market and will use the funds to refinance a facility used to acquire Viverso last year.

The notes mature in 2019 and carry a coupon of 6.125 percent, the Auckland-based company said in a statement. The US dollar proceeds will be converted into euros via a cross currency swap.

Nuplex lifted its debt facilities by about A$100 million to A$300 million to finance the acquisition after agreeing to buy Bayer MaterialScience's Viverso for 75 million euros in October, adding resins production in Germany.

The company also said it will redeem its $52.6 million of capital notes on Sept. 15, using funds from existing bank facilities. Following the redemption, Nuplex's total debt facilities will be the US$105 million of notes and the existing A$200 million bank facilities.

"By raising funds in the USPP market we have been able to access long term, fixed price debt which balances and strengthens our overall funding position by extending our maturity profile and diversifying our funding sources," said chief financial officer Ian Davis.

Shares of Nuplex were unchanged at $2.54 and have gained 11 percent this year. The stock is rated ‘hold' based on the consensus of six analysts polled by Reuters.

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