Keller lays foundations for growth with anticipated $300M debt private placement led by HSBC

Global geotechnical specialist contractor Keller Group successfully signed a note purchase and guarantee agreement, in relation to the proposed private placement of $300m of loan notes (“the Notes”) by its corporate subsidiary, Keller Holdings Limited, scheduled to take place on 10 August 2023, subject to the fulfilment of certain conditions precedent.

Having demonstrated resilient delivery during the last two COVID-impacted years, and with a robust order book, Keller is expecting a period of sustained growth. The Group has made 27 acquisitions since 2000 and is also keen to acquire further businesses that will help it enhance its product offering or increase market share in target markets.

The financing, which will take the form of an unrated, fixed rate, debt private placement, saw HSBC act as an advisor and arranger between Keller and institutional investors in a private sale of debt securities.

The transaction was upsized from an initial amount of $150 million to a final figure of $300 million following strong demand. Upon the fulfilment of certain conditions precedent, two separate tranches of Notes will be issued with $120 million in seven-year Notes and $180 million in 10-year Notes.

This financing will allow Keller to strengthen its long-term relationships with existing investors and increase funding sources with complimenting new institutional investors.

David Burke, Chief Financial Officer at Keller Group, said: “This transaction represents an important milestone in our growth journey. It is strategically aligned to our objectives of increasing Keller’s market presence in our chosen markets and focusing on attractive projects that positively impact communities around the world.”

Carling Colfer, Vice President of UK and European Private Placements at HSBC added: “Keller continues to be a world leader in geotechnical solutions. Our initial private placement relationship with Keller started nearly a decade ago, and we’re delighted to continue working with the company to facilitate the financial backing it needs to achieve its global ambitions.”

Established in 1860 and listed on the London Stock Exchange in 1994, Keller Group is now the world’s largest independent geotechnical specialist focusing on ground engineering and foundations. Keller Group is a constituent of the FTSE 250.

Keller uses its foundation and ground improvement techniques to solve a wide range of challenges across the entire construction sector, from commercial and residential projects to infrastructure construction, as well as projects to address environmental challenges. Every day, people around the world live, work and play on ground prepared by Keller.