James Hardie proposes $1.7 billion senior notes in private offering to fund AZEK deal

James Hardie Industries

03/06/2025 24:59

Corrects to add dropped word 'partly' in paragraph 1, removes paragraph 5 that refers to regulatory scrutiny

June 3 (Reuters) - ASX-listed James Hardie JHX.AX proposed on Tuesday a private offering of $1.7 billion senior notes, to be issued in one or more tranches, partly to fund the cash needs for its proposed acquisition of U.S. artificial decking maker AZEK AZEK.N.

The proceeds will be used to repay and terminate AZEK's existing credit facility, as well as cover transaction fees and related expenses.

The private placement announcement comes a day after the fibre-cement maker unveiled new senior credit facilities totaling $3.5 billion to support both its operations and the U.S. acquisition.

In March, James Hardie said that it would buy AZEK for $8.75 billion, a move that could potentially expose the company to a faltering U.S. housing market characterized by tariffs, an immigration crackdown, and new housing stock at nearly a two-decade high.

 (Reporting by Sneha Kumar in Bengaluru; Editing by Mohammed Safi Shamsi)

 ((Sneha.Kumar@thomsonreuters.com;))