International DIY group Kingfisher is to cut debt and improve its return on cash by purchasing up to £100m of loan notes from holders.
Kingfisher, owner of the B&Q chain in the UK and Castorama in France, issued details of a tender offer this morning to holders of £250m of notes, due on December 15 2014.
The retailer said: “The purpose of the offer is to reduce the company’s gross debt and improve the return on cash held on its balance sheet. Notes repurchased by the company will be cancelled and no0t reissued or resold.
The repurchase price will be set on the afternoon of January 20.
Three years ago Kingfisher’s net debt was £1.6bn. In the third quarter of this year year the retailer had net cash of £200m.