James Hardie Industries Announces Debt Reduction
15 January 2021 - 8:21PM
Business Wire
Utilizes Strong Cash Position for Voluntary
Redemption of Senior Notes
James Hardie Industries plc (ASX: JHX; NYSE: JHX), the
world’s #1 producer and marketer of high-performance fiber cement
and fiber gypsum building solutions, today announced that it has
made a voluntary redemption of its 4.75% senior unsecured notes due
2025 with a payment of US$410 million in principal and call
premium. As a result of this redemption, the Company reduced its
long-term gross debt balance from approximately US$1.3 billion, as
of September 30, 2020, to approximately US$900 million, aligned
with the Company’s previously announced plans to reduce gross debt
by US$400 million by the end of fiscal year 2021. Following the
repayment, which was funded with cash on hand, the Company has
liquidity in excess of US$600 million, including cash plus
availability on its undrawn credit facility.
“This debt pay down represents another step forward in the
execution of our strategy since calendar 2019 to transform James
Hardie into a high-performing, world-class organization,” stated
James Hardie CFO, Jason Miele. “Today's announcement reflects the
continuation of exceptional cash generation from our consistent
improvement in LEAN manufacturing initiatives, profitable sales
growth, and supply chain integration with customers. Cash interest
expense savings are expected to approximate US$20 million on an
annualized basis. We are excited to begin calendar 2021 with a
flexible balance sheet and a solid liquidity position to further
invest in our strategic initiatives while continually improving
returns for shareholders.”
Forward-Looking Statements
This Media Release contains forward-looking statements and
information that are necessarily subject to risks, uncertainties
and assumptions. Many factors could cause the actual results,
performance or achievements of James Hardie to be materially
different from those expressed or implied in this release,
including, among others, the risks and uncertainties set forth in
Section 3 “Risk Factors” in James Hardie’s Annual Report on
Form 20-F for the year ended 31 March 2020; changes in general
economic, political, governmental and business conditions globally
and in the countries in which James Hardie does business; changes
in interest rates; changes in inflation rates; changes in exchange
rates; the level of construction generally; changes in cement
demand and prices; changes in raw material and energy prices;
changes in business strategy and various other factors. Should one
or more of these risks or uncertainties materialize, or should
underlying assumptions prove incorrect, actual results may vary
materially from those described herein. James Hardie assumes no
obligation to update or correct the information contained in this
Media Release except as required by law.
This media release has been authorized by the James Hardie Board
of Directors.
James Hardie Industries plc is a limited liability company
incorporated in Ireland with its registered office at Europa House,
2nd Floor, Harcourt Centre, Harcourt Street, Dublin 2, D02 WR20,
Ireland
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version on businesswire.com: https://www.businesswire.com/news/home/20210115005164/en/
Investor/Media/Analyst Enquiries: Anna Collins
Telephone: +61 2 8845 3356 Email:
media@jameshardie.com.au
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