James Hardie Industries Announces Pricing Of Offering Of $1.70 Bln Of Senior Secured Notes

(RTTNews) - James Hardie Industries plc (JHX.AX) announced the pricing of a private offering of $700 million aggregate principal amount of senior secured notes due 2031 and $1.00 billion aggregate principal amount of senior secured notes due 2032 of its wholly-owned subsidiary, JH North America Holdings Inc.

The 2031 Notes will bear interest at a rate of 5.875% per annum and the 2032 Notes will bear interest at a rate of 6.125% per annum.

James Hardie said it plans to use the net proceeds from the offering, together with borrowings under its credit facilities and cash on hand, to finance the aggregate cash consideration in the proposed acquisition of the AZEK Company Inc., to repay and terminate AZEK's existing credit facility and to pay related transaction fees and expenses.

At the closing of the Notes offering, the proceeds of the Notes are expected to be placed into escrow pending the consummation of the proposed AZEK merger. If the merger is not consummated, the Issuer will be required to repay the Notes at a redemption price equal to 100% of the initial issue price of the Notes, plus accrued and unpaid interest, if any, to, but excluding, the redemption date.