New Issue: HeidelbergCement upsizes to €700 million, seven-year notes yield 7 5/8%

By Paul A. Harris

St. Louis, July 1 - HeidelbergCement AG priced an upsized offering of €700 million (from euro 600 million) of senior notes due July 15, 2010 (Ba1/BB+) at par, Tuesday, to yield 7 5/8%, according to a syndicate source.

The price talk of 7 5/8% area had tightened from 7 ½%-7 ¾%.

Deutsche Bank Securities, Citigroup and Royal Bank of Scotland were joint bookrunners on the Rule 144A/Regulation S deal. Dresdner Kleinwort Wasserstein, HBV and ING Barings were joint leads. ABN Amro, Commerzbank, Credit Lyonnais and Nordea were co-managers.

Proceeds will be used to refinance debt.

Issuer:	HeidelbergCement AG
Amount:	€700 million (increased from €600 million)
Maturity:	July 15, 2010
Security description:	Senior notes
Bookrunners:	Deutsche Bank Securities, Citigroup, Royal Bank of Scotland
Joint lead managers:	Dresdner Kleinwort Wasserstein, HBV, ING Barings
Coupon:	7 5/8%
Price:	Par
Yield:	7 5/8%
Spread:	399 basis points over the 5 ¼% Bunds due 2010
Call features:	Callable on July 15, 2007 at 103.688, 101.844, par on July 15, 2009 and thereafter
Equity clawback:	Until July 15, 2006 for 35% at 107.625
Settlement date:	July 8, 2003
Ratings:	Moody's: Ba1
	Standard & Poor's BB+
Price talk:	7 5/8% area (tightened from 7 ½%-7 ¾%)

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