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 2020
| Facility | Currency | Committed funds million | Maturity | £ million equivalent |
|---|---|---|---|---|
| Syndicated bank RCF | GBP | 1,400 | 2024 | 1,400 |
| EMTN | EUR | 1,850 | 2022-25 |
1,608 |
| EMTN | GBP | 250 | 2029 | 250 |
| Term loan facilities | EUR | 254 | 2021-25 |
221 |
| Private placement | EUR | 59 | 2020 |
51 |
| Private placement* | USD | 308 | 2019-22 | 239 |
| Total | 3,769 |
* Net of cross-currency interest rate swaps
Analysis of Gross Debt at 30 April 2020
Available committed facilities as at 30 April 2020
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 |