Tirlán raises €230 million from share placement to close bond
Tirlán has announced that it has raised €230.3 million from the placement of 17 million of its shares in Glanbia plc as part of the process of closing its exchangeable bond of €250 million.
This follows the announcement yesterday (Tuesday, September 30) that Tirlán would begin the process of closing out the bond, which was issued in January 2022 to raise funds as part of the transaction with Glanbia plc that resulting in the formation of Tirlán.
To fund the repurchase of the bond, Tirlán placed 17 million shares in Glanbia plc with institutional investors yesterday at a share price of €13.55 per share.
The proceeds of €230.3 million from the share placement were used to fund the concurrent repurchase and cancellation of the outstanding exchangeable bond.
The bonds was repurchased at a price of €262.5 million, reflecting their market value.
According to Tirlán, the remaining balance of the bonds above what was raised through the share placement was covered using existing co-op resources set aside for this purpose.
Glanbia participated in the share placement by purchasing and cancelling 7.38 million shares, representing around 2.9% of the company's share capital.
Following the completion of the sale of 17 million shares in Glanbia, Tirlán Co-Op now holds 17.86% of the publicly quoted shares in the plc.
Tirlán remains the largest equity investor in Glanbia and "continues to be a strong supporter of its strategy," the co-op said.
Commenting on this process, Tirlán chief executive Sean Molloy said: "We are pleased to announce the very successful close-out of the exchangeable bond, a strategic financing initiative that has delivered significant value for the co-op and our members.
"The board considered it timely to repay the bond now, thereby completing the transaction that led to the formation of Tirlán and placing the co-ops in a strong financial position."
According to Molloy, the co-op is now "effectively debt free" as a result of this process.
"This marks the culmination of a journey that began in 2012, during which we achieved full ownership of our business, retained a significant shareholding in Glanbia plc, and distributed 63 million plc shares, today worth €882 million, to our members," Molloy said.
