Chicago, Nov. 30 – Electricite de France SA priced €1 billion of deeply subordinated hybrid bonds (Ba1/B+/BBB-) on Wednesday at par, according to a market source.
The initial 7½% interest rate resets for the first time on Dec. 6, 2028. Starting on that date and on five-year anniversaries, the rate will reset to the five-year mid-swap rate plus 486 basis points. There is also a 25 bps step-up on Dec. 6, 2033 and then a 75 bps step-up on Dec. 6, 2048.
The perpetual notes come with six years of call protection. They have a par call during the three months before the first reset and then on any interest payment date thereafter. Before that time, there is a make-whole redemption premium of Bunds plus 50 bps.
Final books were at €5.6 billion. Initial price talk was in the 8¼% area.
Barclays, BNP Paribas, Credit Agricole CIB and Santander are the joint bookrunners.
Proceeds will be used for general corporate purposes, including the refinancing of the $3 billion reset perpetual subordinated notes. There are $2,097,614,000 outstanding.
EDF is a Paris-based electric utility company.
| Issuer: | Electricite de France SA
|
| Amount: | €1 billion
|
| Issue: | Hybrid bonds
|
| Maturity: | Perpetual
|
| Bookrunners: | Barclays, BNP Paribas, Credit Agricole CIB and Santander
|
| Coupon: | 7½% initial rate; resets on five-year anniversaries starting Dec. 6, 2028 at mid-swaps plus 486 bps; 25 bps step-up on Dec. 6, 2033; 75 bps step-up on Dec. 6, 2048
|
| Price: | Par
|
| Yield: | 7½%
|
| Spread: | Bunds plus 561.5 bps
|
| Call features: | First call date on Sept. 6, 2028
|
| Trade date: | Nov. 30
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| Settlement date: | Dec. 6
|
| Ratings: | Moody’s: Ba1
|
| S&P: B+
|
| Fitch: BBB-
|
| Distribution: | Regulation S
|
| Price talk: | 8¼% area
|
| ISIN: | FR001400EFQ6
|
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