Victoria raises £430m from bond issue

It will use half of the 500 million euros to fund acquisitions of more firms.

Victoria, which has its Victoria Carpets headquarters in Worcester Road, said the issue was seven times oversubscribed by investors.

The group had announced earlier this week that it wanted to raise about £300m, but the amount of the offer was increased following “very strong demand”.

Victoria, which has grown through buying rival companies in recent years, has seen increased demand during the coronavirus crisis as people have looked to improve their homes.

It enjoyed record operating profits despite the impact of the lockdowns in final three months of 2020.

Executive chairman Geoff Wilding said Victoria was delighted with the level of support from bond investors.

"The offer was heavily oversubscribed, enabling us to not only raise the targeted 250 million euros to help fund acquisitions we expect to complete in the near-term, but also re-finance 250 million euros of our existing 2024 bonds – extending the duration of our debt to 2026 whilst significantly lowering the interest rate to a very attractive 3.625 per cent.

“The demand from investors was reinforced by the group’s very strong trading over the last 12 months, which saw record operating profits despite the material impact of the lockdowns in the June quarter. The reorganisation and investment undertaken by the Group in 2019 has, as planned, delivered a sustainable margin expansion of more than 300 basis points and the financial outlook for the group remains strong.

“The board wishes to thank bond investors for their support and confidence, which is an important contribution to the group as it continues to execute its strategy to create shareholder value.”