British headquartered retail group Kingfisher (LSE: KGF) made an offer to certain bondholders to buy back €250 million of the company’s debt. The tender offer specifically relates to Kingfisher’s 4.125% loan notes which are due for redemption on 23 November 2012. The FTSE100 constituent said the early buy-back will reduce gross debt and improve its balance sheet.
The tender offer representing nearly half the Kingfisher 4.125% 2012 loan notes in issue is expected to close on the 22 January 2010.
In December 2009, Kingfisher revealed strong results for the third quarter ended 31 October. The B&Q parent company reported a 5.6% increase in total reported sales and a 284% increase in reported retail profits, of which 80% were earned outside the UK.
In the Q3 trading statement, group chief executive Ian Cheshire said the company’s seven step programme to improve cash returns was delivering encouraging results and net debt was down 90% since the start of 2008.
Disclosure: The author holds no positions in the company