New Issue: HeidelbergCement sells upsized €650 million 6¾% 5.5-year notes at 99.44 to yield 6 7/8%

By Paul A. Harris

St. Louis, June 22 - HeidelbergCement AG priced an upsized €650 million issue of 6¾% 5.5-year fixed-rate notes (B1/BB-/BB-) at 99.44 to yield 6 7/8% on Tuesday, according to an informed source.

The yield printed at the tight end of the 7% area price talk.

Bank of America Merrill Lynch was the left lead bookrunner for the quick-to-market Regulation S only deal, which was upsized from €500 million.

BayernLB, Handelsbanken, Morgan Stanley, Nordea, Raiffeisen Zentralbank Osterreich and SEB Merchant Banking were the joint bookrunners.

The German building materials company will use the proceeds to optimize its maturity profile.

Issuer:	HeidelbergCement AG
Amount:	€650 million, increased from €500 million
Proceeds:	€646.36 million
Maturity:	Dec. 15, 2015
Securities:	Fixed-rate notes
Bookrunners:	Bank of America Merrill Lynch (left lead), BayernLB, Handelsbanken, Morgan Stanley, Nordea, Raiffeisen Zentralbank Osterreich, SEB Merchant Banking
Coupon:	6¾%
Price:	99.44
Yield:	6 7/8%
Spread:	506 bps
Trade date:	June 22
Settlement date:	July 1
Ratings:	Moody's: B1
	Standard & Poor's: BB-
	Fitch: BB-
Distribution:	Regulation S only
Price talk:	7% area

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