Published on 3/21/2016 in the Prospect News High Yield Daily.
New Issue: HeidelbergCement prices €1 billion 2¼% seven-year bullet at mid-swaps plus 205 bps
By Paul A. Harris
Portland, Ore., March 21 – HeidelbergCement AG priced a €1 billion issue of 2¼% seven-year senior notes (expected ratings Ba1//BB+) at a 205 basis points spread to mid-swaps on Monday, a market source said.
The spread came at the tight end of revised spread talk in the 210 bps area. That talk had tightened during marketing from earlier guidance in the 225 bps area.
The deal, which was launched at benchmark size, played to €3 billion of orders, according to a company press release.
Active bookrunner Morgan Stanley & Co. International plc will bill and deliver. BofA Merrill Lynch, ING Bank, Commerzbank and Nordea Bank Danmark A/S were also active bookrunners.
BNP Paribas, Citigroup, Danske, Deutsche Bank, Handelsbanken, Intesa, Mediobanca, Royal Bank of Scotland, SEB and Standard Chartered Bank were the passive bookrunners.
The Heidelberg, Germany-based building products company plans to use the proceeds to refinance debt and for general corporate purposes.
| Issuer: | HeidelbergCement AG
|
| Amount: | €1 billion
|
| Maturity: | March 30, 2023
|
| Securities: | Senior notes
|
| Active bookrunners: | Morgan Stanley & Co. International plc (bill and deliver) BofA Merrill Lynch, ING Bank, Commerzbank, Nordea Bank Danmark A/S
|
| Passive bookrunners: | BNP Paribas, Citigroup, Danske, Deutsche Bank, Handelsbanken, Intesa, Mediobanca, Royal Bank of Scotland, SEB, Standard Chartered Bank
|
| Coupon: | 2¼%
|
| Price: | 99.616
|
| Yield: | 2.31%
|
| Spread: | Mid-swaps plus 205 bps
|
| Call: | Par call three months prior to maturity, otherwise non-callable
|
| Trade date: | March 21
|
| Settlement date: | March 30
|
| Expected rating: | Moody's: Ba1
|
| Fitch: BB+
|
| Distribution: | Regulation S
|
| Price talk: | Mid-swaps plus 210 bps area, revised from mid-swaps plus 225 bps
|
| Marketing: | Quick to market
|
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