Published on 7/18/2014 in the Prospect News High Yield Daily.
New Issue: France’s Loxam prices €660 million notes in two tranches
By Paul A. Harris
Portland, Ore., July 18 – Loxam SAS priced €660 million of notes in a resized two-part transaction that saw €10 million of proceeds shifted to the senior secured tranche from the senior subordinated tranche on Friday, according to a market source.
The deal included an upsized €410 million tranche of seven-year senior secured notes (/BB-/) which priced at par to yield 4 7/8%. The tranche was increased from €400 million. The yield printed at the wide end of yield talk that had been set in the 4¾% area.
In addition Loxam priced a downsized €250 million tranche of eight-year senior subordinated notes (/B/) at par to yield 7%. The tranche was reduced from €260 million. The yield printed at the wide end of the 6¾% to 7% yield talk.
Joint bookrunner Deutsche Bank will bill and deliver. BNP Paribas, Credit Suisse, Credit Agricole CIB, Natixis and SG CIB were also joint bookrunners
The Paris-based equipment rental company plans to use the proceeds to refinance debt.
| Issuer: | Loxam SAS
|
| Amount: | €660 million
|
| Bookrunners: | Deutsche Bank (bill and deliver), BNP Paribas, Credit Suisse, Credit Agricole CIB, Natixis, SG CIB
|
| Trade date: | July 18
|
| Settlement date: | July 23
|
| Distribution: | Rule 144A and Regulation S
|
| Marketing: | Roadshow
|
|
|
| Senior secured notes
|
| Amount: | €410 million, increased from €400 million
|
| Maturity: | July 23, 2021
|
| Coupon: | 4 7/8%
|
| Price: | Par
|
| Yield: | 4 7/8%
|
| Spread: | 427 bps
|
| First call: | July 23, 2017 at 102.438
|
| Ratings: | Standard & Poor’s: BB-
|
| Price talk: | 4¾% area
|
|
|
| Senior subordinated notes
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| Amount: | €250 million, decreased from €260 million
|
| Maturity: | July 23, 2022
|
| Coupon: | 7%
|
| Price: | Par
|
| Yield: | 7%
|
| Spread: | 619 bps
|
| First call: | July 23, 2017 at 105.25
|
| Rating: | Standard & Poor’s: B
|
| Price talk: | 6¾% to 7%
|
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