Bidvest has successfully priced a US dollar-denominated senior unsecured seven-year bond of $500m at a coupon of 6.2%, the group said on Thursday.
The notes, to be issued by The Bidvest Group (UK) Plc, are guaranteed by Bidvest.
Earlier this week the group said it had mandated Absa, BofA Securities and Citi as joint global coordinators to arrange a series of fixed income investor meetings in London and investor calls.
It said a senior unsecured benchmark offering was expected to follow, subject to market conditions.
Bidvest also announced a concurrent any-and-all tender offer on its outstanding $478m 3.625% notes due September 2026 conditional upon, among other things, the successful completion of the new notes offering.
On September 1, the group reported revenue for the year ended June was up 5% at R126.6bn and trading profit was 1% higher at R12bn.
Headline earnings per share (HEPS) from continuing operations were down 3% at 1,759.5c, and 2% lower for total operations. The group reported a 6% rise in cash generated by operations, at R14.7bn.
Among its divisions, Bidvest said the earnings contraction in freight (10%) and commercial products (28.4%) continued into the second half.
The diversified industrial group said it was not looking to make any big acquisitions in the new financial year after completing more than 20 deals in the past two years. In the year to end-June, the group concluded nine acquisitions across SA, the UK and Australia.
Bidvest’s deal-making activities culminated in the purchase of Citron Hygiene, giving it a foothold in North America.
Bidvest CEO Mpumi Madisa said the group aimed to bed down its recent purchases and was excited by the possibilities Citron presented.
“After two years of significant M&A activity, Bidvest executed almost all transactions in the proactively built pipeline,” Madisa said.
“The focus is being maintained on ensuring these businesses deliver on their growth potential and generate strong operational cash flow.”
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