By Paul A. Harris
St. Louis, Sept. 2 - Conti-Grummi Finance BV, a financing unit of German tire manufacturer Continental AG, priced a €1 billion issue of 7½% seven-year senior secured notes (B1/B/) at 99.3304 to yield 7 5/8% on Thursday, according to an informed source.
The yield printed at the tight end of the 7¾% area price talk.
Deutsche Bank, BNP Paribas, Bank of America Merrill Lynch, Credit Agricole, DZ Bank and HSBC were the joint bookrunners for the quick-to-market deal, which was upsized from €750 million.
The Hanover, Germany-based company will use the proceeds to repay debt.
Continental's most recent previous visit to the high-yield primary market came on July 9, 2010, when it priced a €750 million issue of 8½% senior secured notes due 2015 (B1/B/) at 99.004 to yield 8¾%.
| Issuer: | Conti-Gummi Finance BV (Continental AG)
|
| Amount: | €1 billion, increased from €750 million
|
| Maturity: | Sept. 15, 2017
|
| Securities: | Senior secured notes
|
| Bookrunners: | Deutsche Bank, BNP Paribas, Bank of America Merrill Lynch, Credit Agricole, DZ Bank, HSBC
|
| Coupon: | 7½%
|
| Price: | 99.3304
|
| Yield: | 7 5/8%
|
| Spread: | 581 bps
|
| First call: | Sept. 15, 2013 at 103.75
|
| Trade date: | Sept. 2
|
| Settlement date: | Sept. 13
|
| Ratings: | Moody's: B1
|
| Standard & Poor's: B
|
| Distribution: | Rule 144A and Regulation S for life
|
| Price talk: | 7¾% area
|
| Marketing: | Quick to market
|
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