Kier Share Discussion Threads

[morph7] 26/2/2024 15:06

Trying to breakout...

[johnrxx99] 26/2/2024 04:46

I know it's Yahoo but....

[stutes] 22/2/2024 10:00

The issues raised by MS about supply chain failure is one I've raised in the past.

As more big construction firms boost their cash at bank, I do wonder why K needs a debt facility circa £511m? Are they prpping for a takeover of say Tilbury Douglas or ISG or?

[bathboy2] 20/2/2024 05:56

You have to ask why have Kier decided to replace a large proportion of RCF monies that may or not have been drawn down and replace with higher cost Senior notes , and more to come in January 2025 , with the now situation, the 495mn RCF is now a mix of loans totaling 511mn , so debt potentially now higher , is this so they can pay a dividend, which IMO is foolish, they should save and pay off the debt 1st

[stutes] 17/2/2024 15:47

9% Note - will shareholders receive 9% yield? Will it be the case for 2024 K is working more for the lenders ?

[stutes] 17/2/2024 08:18

Your silly comments gloss over why rejigging debt still shows K needs debt to finance its working capital.
The building industry has, imho, its version of PPI, the extended defects liability periods increased from 6yrs to 15yrs or from 15 yrs to 30yrs. We shall see how the big firms are exposed to claims.
We shall see how K fares over next 3yrs and if your comments are embarrassing.

[itisonlymoney] 16/2/2024 16:31

didn't know kier were doing this one. hope they've been paid upfront. 😊

Kier reaches final stages of £45M Thames Water pipeline upgrade project in Swindon

[itisonlymoney] 16/2/2024 16:26

They haven't increased debt. They've replaced debt that will be expiring. Prudent, not necessarily absolutely vital, but it's wise for Kier to have plenty of available capital with a long expiry.

Have you learnt how to read an annual report yet and figured out what a revolving credit facility is yet?

[stutes] 16/2/2024 14:16

Kier Group plc ("Kier" or the "Issuer"), a leading UK infrastructure services, construction and
property group providing specialist design, build capabilities and project management, has
successfully issued £250.0 million in aggregate principal amount of 9.0% Senior Notes due 2029
(the "Notes"). Kier intends to use the proceeds from the offering of the Notes to partially prepay
certain elements of its existing credit facilities and private placement notes (the "Refinancing").
The Notes will be general unsecured senior obligations of the Issuer and will be guaranteed on a
senior basis by certain subsidiaries of the Issuer.
In parallel, Kier has also amended and extended its revolving credit facility (the "RCF"). As of 30
June 2023, £495.0 million was committed under the RCF. Following the Refinancing, commitments
under the RCF will be reduced to approximately £261 million. As part of the RCF amendment and
extension, commitments under the RCF will be further reduced to £150.0 million with effect as of
31 January 2025 and will mature on 31 March 2027. The Refinancing will complete the Issuer's
wider refinancing, in line with its overall strategy of de-gearing the business whilst retaining
flexibility and optionality to deliver future growth.
Andrew Davies, Chief Executive of Kier, commented:
"I am delighted that through the issue of the Notes, we have secured long-term financing at
competitive rates, receiving strong support from new financing partners.
This comprehensive refinancing strengthens our debt maturity profile whilst diversifying our
sources of funding and represents an important step in the delivery of our medium-term value
creation plan."
Application will be made to list the Notes to ....

Why increase debt when UK is in recession and rates are set to fall from June , if the pundits are right?

[thebears1] 15/2/2024 18:11

And a good chance of re-entry into the ftse 250 reshuffle end February

[itisonlymoney] 15/2/2024 14:57

no you are correct. dunno where i got 24th from. maybe they changed the date on their calendar, but it was the 9th last yr, so 7th is consistent and that's what it says right now. going to be a busy first week for the share price

[empsey] 15/2/2024 11:57

Hi,
I have the results down for 7th March not the 24th ( announced 18th Jan).
Have I missed something?
E.

[itisonlymoney] 09/2/2024 14:32

getting serious now. there's going to be good news flow here. ftse250 reentry at beginning of March, confirmed in the reshuffle mid month and then the H1 audited results and dividend announcement on the 24th.

[value king] 09/2/2024 14:14

Kier Group PLC, up 4.6% at 133.46 pence, 12-month range 64.00p-134.20p. Berenberg starts the infrastructure services, construction and property company with a 'buy' broker rating, and a target price of 210p.

[marksp2011] 09/2/2024 10:27

They are paying down private notes

In my experience, they could be at anything up to 2% per month, they were vulture fund money from the dark days of Mursell. There will be an early repayment fee too.

3.5% over BEBR isn't bad as a spread just effing pricey and shows you why corporate bonds are a decent investment

[stdyeddy] 09/2/2024 09:51

Fitch Publishes Kier Group Plc First-Time IDR at 'BB+'; Outlook Stable
Mon 05 Feb, 2024 - 07:54 ET

Fitch Ratings - London - 05 Feb 2024: Fitch Ratings has published Kier Group Plc's (Kier) Long-Term Issuer Default Rating (IDR) of 'BB+'. The Outlook is Stable. Fitch has also published the group's proposed GBP250 million senior unsecured notes an instrument rating of 'BB+' with a Recovery Rating of 'RR4'.

[stdyeddy] 09/2/2024 09:39

Very positive reaction from the market on the senior debt pricing. Maybe not as good as a blue-chip but Fitch gives Kier a BB+ rating. If they issue the whole offering -- there's no prospectus currently and just notices saying there's no obligation for one -- but at 9% this would add £12.5m to Kier's current finance costs annually, except that they've also paid off £100m recently (unspecified which debt) so maybe overall it adds about £7m or £8m to financing. Very useful working capital for an expanding order book and it gives certainty on the replacement for debt arrangements that expire next year.

[richsawko] 09/2/2024 09:32

Markets like the offering. This is going a lot higher with the confirmed order book and margins now being achieved

[dht4] 09/2/2024 03:36

9% of £250m < 3.5% of £4,000m?
4 weeks to dividend announcement.
3x dividend cover.

[bathboy2] 09/2/2024 01:06

RNS yesterday , 250mn senior notes at 9%, due 2029, ouch!!

[xamf] 08/2/2024 21:10

I didn't realise I'd filtered Bathboy before as I can't see his posts. He must be pretty bad for myself to have filtered him. Just filter and focus on your research. They're not worth responding to.

[bathboy2] 08/2/2024 00:54

You really should double check what say , I didn't state that the banks etc wouldn't lend to Kier , I said construction in general , and expect rates to be punitive, because of the failures of 100mn+ turnover companies, some 500mn , banks don't like getting hurt , so they then take it out on the rest of the sector, expected rates could be 6% + , but if it gets as high as 10% , it is really going to hurt the bottom line of a 3% gross margin company before taxes, current interest rates being offered for some on smaller loans , around 4% over 3 to 5 years , for an idea of perspective

[stdyeddy] 07/2/2024 23:48

The usual garbage from you.
No large construction companies have failed recently. Small ones fail all the time.

And you're saying that banks will 'not want to lend' to Kier? That's funny, because you've spent a couple of years telling us that banks are lending almost a billion to Kier. So now that the company is back on its feet and has net cash and is about to announce a dividend, suddenly banks don't want to lend? Yeah, ok.

Rates will be 'punitive' will they? What would that be then? Funny how the share price is unmoved by the news. Got any thoughts on how it'll react to Kier re-joining the FTSE250?

Looks like you were completely wrong about Kier going broke. Dividend announcement next month.

[marksp2011] 06/2/2024 13:18

So BT Bonds priced at 8%

Kier bonds to price at 6%

Really?