Victoria to issue another EUR 250m in senior secured notes

Flooring company Victoria said on Tuesday that, following the “very favourable” reception of its recent senior secured note offering on 23 February, it now intended to offer €250m (£214.44m) in senior secured notes due 2028.

The AIM-traded firm said the net proceeds would be used solely to refinance, in full, the remainder of its outstanding 2024 senior secured notes, to further improve the maturity profile of its debt.

It said the transaction was “leverage neutral”, explaining that the overall level of gross debt and net debt would remain unchanged following the refinancing, subject to transaction costs and redemption premia.

Following the refinancing, the earliest of the group's senior debt would fall due in August 2026.

In conjunction with its “strong” cash generation, the board said that would place Victoria in a “very robust” financial position for the coming years.

The board also stressed that Victoria's “prudent” financial policy remained unchanged, adding that it was committed to its financial policy of 3x senior net leverage post-completion of acquisitions, falling to 2x when in “steady state”.

“The notes will be the general, senior obligations of the company and will be guaranteed by certain of the company's subsidiaries,” the board said in its statement.

“Interest on the notes will be payable semi-annually in arrears.

“The interest rate and offering price will be determined at the time of pricing of the offering, subject to market conditions.”

At 1106 GMT, shares in Victoria were up 0.63% at 795p.