CRH has raised $4.2 billion through a U.S. dollar bond issue by its wholly owned financing subsidiary, CRH America Finance. The bonds, which carry CRH plc’s full guarantee, have maturities ranging from 2032 to 2057 and annual coupon rates of 5.375% to 6.25%.
CRH expects to use the proceeds to finance offers to buy back outstanding notes of Arcosa, repay other existing debt and support general corporate purposes.
Key details
- The issue comprises four tranches:
- $1.35 billion of notes due 2032, with a 5.375% coupon.
- $1 billion due 2034, with a 5.625% coupon.
- $1.35 billion due 2037, with a 5.75% coupon.
- $500 million due 2057, with a 6.25% coupon.
- CRH America Finance issued the notes on November 9. CRH plc guarantees principal, interest and other amounts payable.
- The notes were sold through an underwriting group led by Barclays, J.P. Morgan and Morgan Stanley.
- CRH has not specified how much of the proceeds will go to Arcosa note tenders, other debt repayment or general corporate purposes.
Plain-English implications
The financing adds $4.2 billion of bond principal to CRH’s funding structure, while the use of proceeds is intended in part to address existing debt. At the stated coupon rates, the new notes carry about $238 million in annual interest payments if all remain outstanding for a full year, before fees or any effects from repaid debt.