Piaggio sets minimum coupon at 3 5/8% in exchange for 4 5/8% notes

New York, April 16 – Piaggio & C. SpA announced that the minimum coupon will be 3 5/8% for the new euro-denominated senior notes due 2025 it is offering in exchange for its €250 million of 4 5/8% senior notes due 2021.

The new notes offered in the exchange will be issued at par, according to a news release.

Piaggio expects to set the coupon and maturity date for the new notes on Wednesday.

The exchange was announced on April 9, and the company also called the 4 5/8% notes for redemption.

In the exchange, Piaggio is offering new notes with terms to be set. The new notes will be issued at par, and the exchange price for the existing notes will be 101.272% of par.

The company will exchange the notes on a one-for-one basis and pay the difference between the exchange price and the issue price of the new notes in cash.

Piaggio will also pay accrued interest in cash. Holders of record as of the close of business on April 14 will receive interest on the payment date of April 30.

In addition to the exchange, Piaggio is also offering new notes for cash.

Proceeds from the new notes will be used to pay the cash portion of the exchange and to redeem any notes not tendered into the exchange.

The exchange ends at 11 a.m. ET on April 17. Settlement is planned for April 30.

Any notes not tendered will be redeemed on May 9 at 101.1563% of par plus accrued interest. The redemption is subject to a financing condition.

New notes will be issued in minimum denominations of €100,000 and increments of €1,000 above that. Exchange instructions must be large enough to result in the issuance of at least the minimum denomination.

Piaggio said it is carrying out the exchange and the issue of new notes to optimize its cost of debt and extend its debt maturities.

The dealer managers for the exchange are Banca Akros SpA – Gruppo Banco BPM (dcm@bancaakros.it or +39 02 4344 5203), Banca IMI SpA (liability.management@bancaimi.com or +39 02 7261 2979), BNP Paribas (liability.management@bnpparibas.com or +44 20 7595 8668), Merrill Lynch International (dg.lm_emea@baml.com or +44 20 7996 5420), HSBC Bank plc (lm_emea@hsbc.com or +44 20 7992 6237), ING Bank NV, London Branch (liability.management@ing.com or +31 20 563 8017), Mediobanca – Banca di Credito Finanziario SpA (mb_dcm_corporate_hy@mediobanca.com or +39 02 8829 258) and UniCredit Bank AG (corporate.lm@unicredit.de or +49 89 378 13722). The exchange agent is Lucid Issuer Services Ltd. (+44 20 7704 0880 or piaggio@lucid-is.com).

The exchange is being conducted under Rule 144A and Regulation S.

Piaggio is a Pontedera, Italy, maker of motorcycles and scooters.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.