Debt Investors
DS Smith funds its operations from the following sources of capital: operating cashflow, borrowings, shareholders’ equity and, where appropriate, disposals of non-core businesses.
The Group’s objective is to achieve a capital structure that results in an appropriate cost of capital whilst providing flexibility in short and medium-term funding so as to accommodate material investments or acquisitions. The Group also aims to maintain a strong balance sheet and to provide continuity of financing by having a range of maturities and borrowings from a variety of sources.
Borrowing facilities
DS Smith finances its operations using a number of funding instruments, including Medium-term notes, private placement debt and bank borrowings.
Borrowing facilities as at 30 April 2022
| Facilities | Currency | Maturity | £ million equivalent |
|---|---|---|---|
| Syndicated RCF 2018 | various | 2024-25 | 1,400 |
| Euro medium-term notes | EUR | 2022-26 | 1,552 |
| Euro RCF 2020 | EUR | 2024 | 50 |
| Sterling bond medium-term note | GBP | 2029 | 250 |
| US dollar private placement | USD | 2022 | 213 |
| Euro term loan | EUR | 2025 | 23 |
| Total | 3,488 |
Analysis of Gross Debt at 30 April 2022
Available committed facilities as at 30 April 2022
DS Smith has been given a credit rating of BBB- by Standard & Poor’s.
Euro Medium-term Note Programme
| Maturity date | Issued amount | Coupon | Interest paid | Date | Minimum denominations |
|---|---|---|---|---|---|
| 16 September 2022* | €500m | 2.25% | annually | 16 September | €100k |
| 26 July 2024 | €750m | 1.375% | annually | 26 July | €100k |
| 12 September 2026 | €600m | 0.875% | annually | 12 September | €100k |
| 26 July 2029 | £250m | 2.875% | annually | 26 July | £100k |
*Redeemed July 2022