Forterra prices upsized $500 million offering of 5-year bonds
Forterra Inc. , the maker of water and drainage pipes, priced an upsized bond deal on Thursday, joining the many companies issuing debt during the coronavirus pandemic. The Irving, Tx.-based company issued $500 million of senior secured notes that mature in 2025 at an interest rate of 6.50%. The original plan was to issue just $400 million of bonds. Proceeds will be used to repay part of the sum outstanding under a term loan facility. The company earlier this week issued guidance for the second quarter that was higher than expected. Shares were up 11.6% premarket, and have gained 2.6% in the year to date through Wednesday, while the S&P 500 has fallen 3.6%.
Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news.