Businessman Sean Quinn is close to completing a $300 million (€246 million) fundraising round in the United States, the largest ever for his Quinn Group.
This is the first time that Mr Quinn has raised large-scale funding from the US private placement market. Mr Quinn is following the example of Grafton Group, Kingspan and ESB, who have all raised money from US sources in the past two years.
There has been constant speculation in recent years that some part of the Quinn Group could be floated, but the latest fundraising suggests that the group can access cheap capital without going to the markets.
It is understood that the Quinn Group originally sought $250 million in funds, but following a strong initial response, the company decided to increase this to $300 million. A roadshow for the transaction was held in the US in recent weeks.
The funds are earmarked for "future development needs" and to replace existing debt, said a company spokesman yesterday. He declined to say what specific projects might benefit from the fresh capital.
The deal was put together by Barclays Capital, which has worked with several Irish companies on deals in the US.
It is understood that the funds have repayment dates, ranging from five to 10 years.
The fundraising provides a boost for the company because while it has no official rating, it was given a very high rating during the fundraising exercise.
Mr Quinn founded the group 30 years ago and is now involved in a range of industries. Its manufacturing division produces construction industry products. The company also has extensive property interests, including nine hotels, nine pubs and a fitness club.
One area where the funds may be employed is the Quinn Direct insurance company, which has been expanding its market share over recent years.
It is now estimated to be the fifth largest insurer in the Irish market.
Quinn Group, which is owned by Mr Quinn and his family, recently disclosed plans to invest € 195 million in a new radiator manufacturing plant in Newport,Wales. It is expected to create 460 jobs in an area that has seen a severe decline in manufacturing activity over the past decade.
Quinn Radiators, which has manufacturing operations in Belgium, Lancashire and Ireland, is already one of Europe's leading producers of domestic radiators.
The company, along with its rivals, is benefiting as low interest rates across Europe have encouraged construction of new homes, and the renovation of existing properties. Once operational, the site will produce about four million compact radiators a year.
The Quinn Group is projecting pretax profits this year of more than €270 million from its insurance, hotel, plastics, glass and building supply interests.
Such profits would amount to an increase of at least 22 per cent over the group's pretax profit of €221 million last year.
