By Paul A. Harris
Portland, Ore., July 6 – CMA CGM SA priced an upsized €650 million issue of five-year senior notes (B3/CCC+) at par to yield 6½% on Friday, according to a market source.
The amount was increased from €600 million after having been previously raised from €500 million.
The yield printed on top of talk that was set in the 6½% area.
Bookrunner BNP Paribas will bill and deliver. HSBC Bank was also a bookrunner.
Credit Agricole CIB, SG CIB and UniCredit Bank were joint bookrunners.
Proceeds will be used to refinance the company’s 8¾% senior notes due 2018 and to repay bank debt.
Prior to the CMA CGM deal pricing, the market had been watching for a carve-out tranche of seven-year notes, which ultimately did not materialize.
CMA CGM is a Marseille, France-based container ship company.
| Issuer: | CMA CGM SA
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| Amount: | €650 million, increased from €500 million, then from €600 million
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| Maturity: | July 15, 2022
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| Securities: | Senior notes
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| Joint global coordinators and bookrunners: | BNP Paribas (bill and deliver), HSBC Bank
|
| Joint bookrunners: | Credit Agricole, SG, UniCredit Bank
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| Joint lead managers: | Credit Industriel et Commercial, ODDO BHF
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| Coupon: | 6½%
|
| Price: | Par
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| Yield: | 6½%
|
| Spread: | 667 bps
|
| Call: | Make-whole call at Bunds plus 50 bps until July 15, 2019, then callable at 103.25
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| Equity clawback: | 40% at 106.5 until July 15, 2019
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| Trade date: | July 7
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| Settlement date: | July 13
|
| Ratings: | Moody’s: B3
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| S&P: CCC+
|
| Distribution: | Rule 144A and Regulation S for life
|
| Price talk: | 6½% area
|
| Marketing: | Roadshow
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