Chicago, May 23 – Legrand, SA priced €700 million of 3.5% sustainability-linked senior bonds due 2029 (A-) on Tuesday, according to a market source.
The notes priced at 99.856 to yield 3.527%, or at mid-swaps plus 38 basis points. Alternatively, the bonds priced at Bunds plus 111.1 bps. Initial talk was in the mid-swaps plus 65 bps area.
As reported on Monday, the coupon will be linked to the achievement of certain sustainability performance targets.
There will be a potential 12.5 bps step-up of the coupon on Dec. 31, 2024 based on Legrand’s carbon footprint, specifically related to scope 3 emissions as measured in 2030 compared to a 2019 baseline. Legrand will be working to engage 250 key suppliers on targets related to the indirect CO2 emissions target by the target observation date in 2024. The company is aiming to engage a total of around 400 suppliers by 2030. There are currently no suppliers engaged.
There is a second key performance indicator related to the promotion of diversity and inclusion. By a target observation date, Legrand expects to fill 30% of its managerial positions with women, compared with 26.7% as of Dec. 31, 2021.
If both targets are met, the coupon will not increase. However, if either target is missed, then the coupon will increase.
The bonds will be callable with a Bunds plus 20 bps make-whole premium until the three-month par call period.
Credit Agricole CIB and Goldman Sachs Bank Europe SE are the joint global coordinators and ESG structuring agents.
Societe Generale is a joint global coordinator.
BNP Paribas, CIC and HSBC are joint active bookrunners.
The order book, at guidance, was above €2.4 billion.
Proceeds will be used for general corporate purposes.
Limoges, France-based Legrand specializes in electrical and digital building infrastructure.
| Issuer: | Legrand, SA
|
| Amount: | €700 million
|
| Issue: | Sustainability-linked senior bonds
|
| Maturity: | May 29, 2029
|
| Bookrunners: | Credit Agricole CIB, Goldman Sachs Bank Europe SE, Societe Generale (joint global coordinators), BNP Paribas, CIC and HSBC
|
| ESG agents: | Credit Agricole CIB and Goldman Sachs Bank Europe SE
|
| Coupon: | 3.5%
|
| Price: | 99.856
|
| Yield: | 3.527%
|
| Spread: | Mid-swaps plus 38 bps, or Bunds plus 111.1 bps
|
| Call features: | Make-whole call at Bunds plus 20 bps; three-month par call
|
| Change of control: | Yes
|
| Trade date: | May 23
|
| Settlement date: | May 29
|
| Rating: | S&P: A-
|
| Distribution: | Regulation S
|
| Price talk: | Mid-swaps plus 65 bps area
|
| Marketing: | Investor calls
|
| ISIN: | FR001400I5S6
|
|
|
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.
