New Issue: Germany's Hapag-Lloyd prices €150 million tap of 7¾% notes at 101.75 to yield 7.33%

By Paul A. Harris

Portland, Ore., Oct. 9 - Hapag-Lloyd AG priced a €150 million add-on to its 7¾% senior notes due Oct. 1, 2018 (Caa1/B-) at 101.75 to yield 7.33% on Wednesday, according to a market source.

The reoffer price came in the middle of the 101.5 to 102 price talk.

Joint bookrunner Deutsche Bank AG will bill and deliver. Citigroup and JPMorgan were also joint bookrunners.

Proceeds will be used to redeem a portion of the company's 9% senior notes due 2015.

Hapag-Lloyd is a Hamburg, Germany-based container shipping firm.

Issuer:	Hapag-Lloyd AG
Face amount:	€150 million
Proceeds:	$153 million
Security description:	Add-on the 7¾% senior notes due Oct. 1, 2018
Bookrunners:	Deutsche Bank AG (bill and deliver), Citigroup and JPMorgan
Co-managers:	Berenberg, IKB, MMWarburg, Morgan Stanley
Coupon:	7¾%
Price:	101.75
Yield:	7.33%
First call:	Oct. 1, 2015 at 103.875
Trade date:	Sept. 9
Ratings:	Moody's: Caa1
	Standard & Poor's: B-
Price talk:	101.5 to 102
Marketing:	Roadshow
Original issue:	€250 million issue priced at par on Sept. 20, 2013
Fungibilty:	Add-on notes will be fungible with the existing notes.
Total issue size:	€400 million

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