CRH Prices $3B in New Notes, Plans Redemption

Ticker: CRH · Form: 8-K · Filed: 2024-03-29T00:00:00.000Z

Sentiment: neutral

Topics: debt-issuance, debt-redemption, financing

TL;DR

CRH just priced $3B in new notes and is calling back old debt. Refi time!

AI Summary

On March 29, 2024, CRH Public Ltd Co announced the pricing of its offering of $1.75 billion aggregate principal amount of 5.300% senior notes due 2034 and $1.25 billion aggregate principal amount of 5.550% senior notes due 2054. The company also announced its intention to redeem all of its outstanding 6.400% senior notes due 2033. This move is part of CRH's ongoing capital allocation strategy.

Why It Matters

CRH is refinancing its debt, potentially lowering its interest expenses and optimizing its capital structure. This could lead to improved financial flexibility and profitability.

Risk Assessment

Risk Level: low — This filing is a routine debt issuance and redemption, which is a common financial activity for large companies and does not indicate significant new risks.

Key Numbers

$3.0 billion — Aggregate Principal Amount of New Notes (CRH issued $1.75B in 2034 notes and $1.25B in 2054 notes.)
5.300% — Interest Rate on 2034 Notes (This is the coupon rate for the newly issued notes maturing in 2034.)
5.550% — Interest Rate on 2054 Notes (This is the coupon rate for the newly issued notes maturing in 2054.)
6.400% — Interest Rate on Redeemed Notes (CRH is redeeming its outstanding notes with this higher interest rate.)

Key Players & Entities

CRH Public Ltd Co (company) — Registrant
$1.75 billion (dollar_amount) — Principal amount of 5.300% senior notes due 2034
$1.25 billion (dollar_amount) — Principal amount of 5.550% senior notes due 2054
March 29, 2024 (date) — Date of report and earliest event
6.400% senior notes due 2033 (debt_instrument) — Notes to be redeemed

FAQ

What is the total principal amount of new senior notes CRH is issuing?

CRH is issuing a total of $3.0 billion in new senior notes, comprised of $1.75 billion due 2034 and $1.25 billion due 2054.

What is the purpose of issuing these new notes?

The filing states the issuance is part of CRH's ongoing capital allocation strategy, which typically involves optimizing its debt structure and funding its operations or strategic initiatives.

Which existing notes is CRH planning to redeem?

CRH intends to redeem all of its outstanding 6.400% senior notes due 2033.

What are the interest rates for the new notes?

The new notes have interest rates of 5.300% for the notes due 2034 and 5.550% for the notes due 2054.

When was this event reported?

This Form 8-K was filed on March 29, 2024, reporting the earliest event on the same date.

From the Filing

0001628280-24-013780.txt : 20240329 0001628280-24-013780.hdr.sgml : 20240329 20240329160109 ACCESSION NUMBER: 0001628280-24-013780 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 15 CONFORMED PERIOD OF REPORT: 20240329 ITEM INFORMATION: Other Events ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20240329 DATE AS OF CHANGE: 20240329 FILER: COMPANY DATA: COMPANY CONFORMED NAME: CRH PUBLIC LTD CO CENTRAL INDEX KEY: 0000849395 STANDARD INDUSTRIAL CLASSIFICATION: CEMENT, HYDRAULIC [3241] ORGANIZATION NAME: 04 Manufacturing IRS NUMBER: 000000000 STATE OF INCORPORATION: L2 FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-32846 FILM NUMBER: 24804080 BUSINESS ADDRESS: STREET 1: STONEMASON'S WAY, RATHFARNHAM CITY: DUBLIN 16 STATE: L2 ZIP: D16 KH51 BUSINESS PHONE: 353 1 404 1000 MAIL ADDRESS: STREET 1: STONEMASON'S WAY, RATHFARNHAM CITY: DUBLIN 16 STATE: L2 ZIP: D16 KH51 8-K 1 crh-20240329.htm 8-K crh-20240329 false 0000849395 0000849395 2024-03-29 2024-03-29 0000849395 us-gaap:CommonStockMember 2024-03-29 2024-03-29 0000849395 crh:SixPointFourPercentNotesDue2033Member 2024-03-29 2024-03-29 UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 8-K CURRENT REPORT Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 Date of Report (Date of earliest event reported): March 29, 2024 CRH public limited company (Exact name of registrant as specified in its charter) Ireland 001-32846 98-0366809 (State or other jurisdiction of incorporation) (Commission File Number) (I.R.S. Employer Identification No.) Stonemason's Way , Rathfarnham , Dublin 16, D16 KH51 , Ireland (Address of principal executive offices) +353 1 404 1000 (Registrant’s telephone number, including area code) Not Applicable (Former name or former address, if changed since last report) Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions: ☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) ☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) ☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d 2(b)) ☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) Securities registered pursuant to Section 12(b) of the Act: Title of each class Trading Symbol(s) Name of each exchange on which registered Ordinary Shares of €0.32 each CRH New York Stock Exchange 6.40% Notes due 2033 CRH/33A New York Stock Exchange Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter) ☐ Emerging Growth Company If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(e) of the Exchange Act ☐ Item 8.01    Other Events. On March 27, 2024, CRH public limited company released a notification of transactions by persons discharging managerial responsibilities, which is filed as Exhibit 99.1 hereto. Item 9.01    Financial Statements and Exhibits. (d) Exhibits. Exhibit No. Description 99.1 Notification of CRH public limited company, dated March 27 , 2024 104 Cover Page Interactive Data File (formatted in Inline XBRL) SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. Date: March 29, 2024 CRH public limited company /s/ Neil Colgan By: N