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