Insulation firm Kingspan extends credit facility to 2019

Insulation-maker Kingspan Group has extended its €300 million credit facility to 2019.

The company said the extension, which adds two years to the facility, was on more favourable pricing terms, but did not disclose the financial details.

The facility is currently undrawn but will be used for general corporate purposes, the company said.

Chief financial officer Geoff Doherty said the deal reflected Kingspan's strong balance sheet and credit profile.

“It improves our capital structure by lengthening our debt maturity profile at very competitive pricing and affords Kingspan significant financing headroom as we seek to further develop our business internationally,” he said.

In a note, Davy Stockbrokers said the extension augmented Kingspan’s “already extremely healthy financial position”, noting the company’snet debt at the end of 2013 was €108 million.

“Kingspan therefore has clear capacity for any investment projects it may seek to undertake,” Davy’s Flor O’Donoghue said. “We expect the group will look to consolidate markets it already operates in as well as seeking opportunities in new territories.”