Health services provider United Drug said today it had completed a financing exercise on its debt facilities.
In a statement this morning, the group said it had combined a €135 million syndicated bank facility with a new $130 million (€102 million) private placement note issue. The bank facility has a four-year term.
The $130 million issue was issued in two tranches, with half of it maturing in seven years and the remaining $65 million maturing in 10 years. The group said it was "significantly oversubscribed".
"The purpose of the exercise is to lengthen our debt maturities and provide additional facilities to the group," said finance director Barry McGrane. "The financing will increase our funding costs but provides substantial additional capacity to the group to support its future development."
United Drug is set to report its results for the year to September 30th, 2010 in November. In an interim management statement in July, the company said profits for the nine months to the end of June were in line with last year.
Shares in the company were trading 0.5 per cent lower on the Dublin market this afternoon, at €2.28.