Vesuvius cuts interest payments with new US bond issue

Vesuvius has raised €100m in a private US bond placing to pay off other, higher-coupon debt.

The molten metal flow engineer issued the new US notes in two €50m series, one at 1.90% maturing in December 2027 and the other at 2.12% maturing in December 2029.

Resulting funds will be used to repay current debt at the FTSE 250 group, mainly the $110m, 4.26% coupon, US private placement maturing on 16 December 2017.

Vesuvius' annual interest costs will decline by roughly £1.8m as a result of this refinancing and the weighted average maturity of its committed debt facilities now stands at approximately six years, versus approximately four years at year-end 2016.