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Published on 7/13/2004 in the Prospect News High Yield Daily.

New Issue: Gildemeister prices €175 million seven-year notes at par to yield 9¾%

By Paul Deckelman

New York, July 13 - Gildemeister AG (B2/B-) priced a €175 million offering of seven-year senior subordinated notes on Tuesday at par to yield 9¾%, according to syndicate sources.

The spread was 586 basis points, in line with pre-deal talk for a 586 basis point spreads.

The German machine-tool maker's deal was brought to market by Bayerische Hypo- und Vereinsbank and Westdeutsche Landesbank following a roadshow last week.

Gildemeister, based in Bielefeld, Germany, is a division of German-based international machine-tool maker DMG.

Gildemeister plans to use the deal proceeds, along with those of a capital increase which it undertook in June by selling new shares, to eliminate shorter and medium maturity debt, while providing more capital for the company's planned expansion.

Issuer: Gildemeister AG

Amount:€175 million
Security description:Senior unsecured notes
Bookrunners:Bayeresche Hypo - und Vereinsbank and Westdeutsche Landesbank
Maturity:July 19, 2011
Coupon:9¾%
Price:Par
Yield:9¾%
Spread:586 basis points
Ratings:Moody's: B2
S&P: B-
Use of proceeds:Eliminate shorter- and medium-maturity debt, fund planned expansion

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