Global building materials company James Hardie Industries has syndicated credit facilities totalling US$3.5 billion.
The figure consists of a US$1 billion revolving credit facility and a US$2.5 billion senior secured Term Loan A. The latter is split into a US$750 million 3-year tranche, priced between 1.25% and 1.875%, and a US$1,750 million 5-year tranche, priced between 1.375% and 2.00%. These prices are based on the secured overnight financing rate (SOFR).
James Hardie has subsequently entered into an interest swap agreement to fix the 3-month SOFR at 3.79% for US$1 billion notional until June 2028 to increase rate certainty and reduce current interest expense.
Proceeds will support the company’s operations and upcoming acquisition of outdoor living products firm The AZEK Company. Bridge facility commitments around this transaction have subsequently been reduced to US$1.7 billion from US$4.3 billion.
Chief financial officer Rachel Wilson commented: “With this action, we will be executing on our growth strategy from an attractive and flexible financial position. We are pleased with the strong show of support that this syndication received from new and existing investors.”
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