By Paul Deckelman
New York, March 24 - Abengoa SA successfully priced a €500 million offering of six-year euro medium-term notes to yield 8 5/8%, high yield primary sources said Wednesday. The pricing actually occurred on Tuesday, with the 8½% non-callable notes coming to market at 99.424 to yield 8 5/8% - at the tight end of pre-deal market price talk envisioning a yield in the 8¾% area.
The sources also said that the offering was upsized from initial expectations of a minimum €300 million deal.
The deal, unrated by the major agencies, was brought to market by active joint lead managers BNP Paribas, Credit Suisse and Deutsche Bank Securities, Inc., along with passive joint leads Credit Agricole, Banco Santander SA and Societe Generale.
If the issue isn't rated by two ratings agencies by December 2010, the coupon on the bond will step up by 125 basis points.
Abengoa, a Seville, Spain-based engineering and technology company, plans to use proceeds for general corporate purposes.
| Issuer: | Abengoa SA
|
| Issue: | Euro medium-term note
|
| Amount: | €500 million (upsized from minimum €300 million)
|
| Maturity: | March 31, 2016
|
| Joint bookrunners: | BNP Paribas, Credit Suisse and Deutsche Bank Securities, Inc. (active) and Credit Agricole, Banco Santander SA and Societe Generale (passive).
|
| Coupon: | 8½% (steps up by 125 bps if issue is not rated by two agencies by December 2010)
|
| Price: | 99.424
|
| Yield: | 8 5/8%
|
| Spread: | 631.2 basis points over Bunds
|
| Call features: | Non-callable for life
|
| Trade date: | March 23 |
|
| Settlement date: | March 31
|
| Ratings: | Not rated
|
| Price talk: | 8¾% area
|
| Distribution: | Regulation S
|
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