Flooring group aims to raise €350m through bond issue

Kidderminster-based flooring group Victoria PLC has announced it hopes to raise €350m through a bond issue.

Following continued strong operating performance and favourable market conditions, it intends to offer €350m in aggregate principal amount of Senior Secured Notes due 2026.

Net proceeds will be used for general corporate purposes, in particular acquisitions, and the partial refinancing of existing 2024 senior secured notes to further improve the maturity profile of the Group’s debt.

Commenting on the proposal, Victoria said: “The new bonds will not increase net debt (subject to transaction fees and expenses), with pro-forma senior net leverage of c. 2.8x and pro-forma total net leverage of c. 3.1×1.

“Other than amounts used for the partial refinancing, the cash raised will remain on balance sheet until invested into earnings-accretive acquisitions, which the Board believe will happen in the short term.”

Victoria added that EBITDA for the 12 months ended December 2020 was £120m – above that for the last financial year to March 2020, despite the inclusion of the April to June Covid-19 lockdowns.