Martin Marietta Materials announced today the pricing of its offering of $300m aggregate principal amount of Floating Rate Senior Notes due 2020 and $300m aggregate principal amount of Senior Notes due 2027 .
The Floating Rate Notes will mature on May 22, 2020, will bear interest at a per annum floating rate, reset quarterly, equal to three-month Libor for US dollars plus 0.65% and will be issued at 100% of par value.
Interest will be paid quarterly in arrears on February 22, May 22, August 22 and November 22, commencing August 22, 2017.
The Fixed Rate Notes will mature on June 1, 2027, will have an interest rate of 3.450% and will be issued at 99.798% of par value. Interest will be paid semiannually on the first day of June and December, commencing December 1, 2017.
The Senior Notes will be sold pursuant to Martin Marietta's shelf registration statement and the base prospectus on file with the Securities and Exchange Commission.
The net proceeds of the offering are expected to be used to:
- refinance in full at maturity Martin Marietta's existing floating rate notes scheduled to mature on June 30, 2017
- repay approximately $200m of the debt outstanding under Martin Marietta's revolving credit facility and
- repay approximately $95m of the debt outstanding under Martin Marietta's trade receivables facility.
Closing of the offering is expected to occur on May 22, 2017, subject to customary closing conditions.
Source: Martin Marietta Materials
