The facilities will be used for general corporate purposes and replace existing committed bank facilities of approximately 拢1.6bn that were due to mature on or before August 2013.
The new facilities have been structured to enable Wolseley's relationship banks to participate and consist of a European facility of 鈧�750m and a US facility of US$270m.聽 The facilities are on essentially the same commercial terms.
Wolseley calculates that the move to current market pricing will save it 拢12m a year.聽 Unamortised arrangement fees of 拢7m will be written off this year as consequence of cancelling the surplus facilities.
Following the syndication the total committed facilities available to the group amount to approximately 拢1.6bn. As at 30 April 2011 the group's adjusted net debt was 拢824m.
The European Facility was co-ordinated by Barclays, Danske and Cr茅dit Agricole and the US facility was jointly lead by Bank of America Merrill Lynch and PNC.
Chief financial officer John Martin said: "The innovative approach of completing loan agreements simultaneously in two jurisdictions enabled聽 Wolseley's relationship banks to participate and allowed Wolseley to take advantage of attractive pricing.聽 We are delighted with the strong support demonstrated by all our relationship banks. These facilities will support the group's growth plans for the foreseeable future. The high level of demand for the new facility is indicative of the quality of Wolseley's credit."聽
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