Travis Perkins (LSE:TPK) shares rose by more than 2.68% this morning after the building supplier confirmed it has refinanced its debt.
Its share price peaked at 808p per share this morning, before settling back to 804p by 09.20 am.
The company said it had renewed a £375 million revolving credit facility, which effectively completes its short-term refinancing programme.
It has renewed the credit facility for a five-year term with two extension options of one year each.
The financing is being provided by a syndicate of eight banks on “broadly comparable terms” to its 2019 facility, the company said.
It includes an accordion facility, meaning that the maximum amount can be expanded if needed.
The building company now has £800 million of debt at its disposal, including a £250 million bond that matures in February 2026, a £75 million term loan and £100 million of US private placement notes.
As of 30 June 2023, its 12-month rolling net debt to underlying earnings (EBITDA) ratio was 2.1x with interest cover of 5.7x.
Fitch confirmed its investment grade rating in October as BBB- on a negative outlook.