By Paul A. Harris
Portland, Ore., May 23 - Galapagos SA and Galapagos Holdings SA priced a €775 million three-part offering of high-yield notes on Friday, according to a market source.
The deal will help to finance Dusseldorf, Germany-based GEA Group AG's spinoff of its heat exchangers business to Triton Advisers Ltd.
The deal included a €325 million tranche of seven-year senior secured floating-rate notes (B1/B/), which priced at par to yield Euribor plus 475 basis points. The reoffer price came on top of price talk. The spread came at the tight end of the Euribor plus 475 bps to 500 bps spread talk.
The deal also included a €200 million tranche of seven-year senior secured fixed-rate notes (B1/B/), which priced at par to yield 5 3/8%. The yield printed 12.5 bps inside of the 5½% to 5¾% yield talk.
The junior portion was a €250 million tranche of eight-year senior unsecured notes (Caa1/CCC+/), which priced at par to yield 7%. The yield printed at the tight end of the 7% to 7¼% yield talk.
Joint bookrunner Deutsche Bank will bill and deliver. Commerzbank, ING, RBC Capital Markets, Royal Bank of Scotland and UniCredit Bank are also joint bookrunners.
| Issuers: | Galapagos SA and Galapagos Holding SA (Heat Exchangers)
|
| Amount: | €775 million
|
| Bookrunners: | Deutsche Bank (bill and deliver), Commerzbank, ING, RBC Capital Markets, Royal Bank of Scotland, UniCredit Bank
|
| Trade date: | May 23
|
| Settlement date: | May 30
|
| Distribution: | Rule 144A and Regulation S
|
| Marketing: | Quick to market
|
|
|
| Senior secured floating-rate notes
|
| Amount: | €325 million
|
| Maturity: | June 15, 2021
|
| Coupon: | Euribor plus 475 bps
|
| Price: | Par
|
| Yield: | Euribor plus 475 bps
|
| First call: | June 15, 2015 at 101
|
| Ratings: | Moody's: B1
|
| Standard & Poor's: B
|
| Price talk: | Euribor plus 475 to 500 bps at par
|
|
|
| Senior secured fixed-rate notes
|
| Amount: | €200 million
|
| Maturity: | June 15, 2021
|
| Coupon: | 5 3/8%
|
| Price: | Par
|
| Yield: | 5 3/8%
|
| Spread: | 453 bps
|
| First call: | June 15, 2017 at 102.688
|
| Ratings: | Moody's: B1
|
| Standard & Poor's: B
|
| Price talk: | 5½% to 5¾%
|
|
|
| Senior unsecured fixed-rate notes
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| Amount: | €250 million
|
| Maturity: | June 15, 2022
|
| Coupon: | 7%
|
| Price: | Par
|
| Yield: | 7%
|
| Spread: | 594 bps
|
| First call: | June 15, 2017 at 105.25
|
| Ratings: | Moody's: Caa1
|
| Standard & Poor's: CCC+
|
| Price talk: | 7% to 7¼%
|
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