Ashtead Group PLC (LSE:AHT), the industrial equipment company, confirmed its US$850 million senior bonds would pay out a principal amount of 5.8%.
Ashtead Capital Inc., a wholly-owned subsidiary of Ashtead, issued the notes, set to mature in 2034, to be priced at 99.611% of the principal amount.
Despite an initial share price rally of 7% in early trade, the stock quickly reversed all its gains to return to around 5,222p.
Completion of the offering is anticipated for 29 January 2024.
Ashtead said the proceeds would go to general corporate purposes and to pay off debt.
Last month, the London-listed group reported a record first-half performance despite having warned that full-year profits would be below expectations.
In the half year ended 31 October 2023, group revenue advanced 16% to US$5.57 billion from US$4.80 billion the year prior, with US revenue up 18% and rental revenue up 14%.
Shares in Ashtead are down around 6% in the last six months.