Chicago, Nov. 15 – Metso Corp. priced its inaugural sustainability-linked bond offering (Baa2/BBB) on Wednesday, according to a market source.
The €300 million of senior notes priced with a 4.375% coupon at 99.346 to yield 4.486%, or at mid-swaps plus 140 basis points. Initial talk started in the mid-swaps plus 180 bps area. Guidance came down to the mid-swaps plus 150 bps area when the order book went over €1.5 billion.
The sustainability targets will be linked to a reduction of scope 1 and scope 2 emissions by 63% by year-end 2027 versus a 2022 base year. Second, there will be a target linked to 30% of direct suppliers by spend covering purchased goods and services having science-based targets by 2025. Each target will be tested independently. For the first target, a 20 bps step-up will apply for each full interest period following the testing date of Dec. 31, 2027. A 10 bps per year step-up will apply following the testing date of Dec. 31, 2025 if the target is not met.
If called, there will be a Bunds plus 30 bps make-whole premium until the three-month par call option before the maturity date.
Citigroup (billing and delivery), BNP Paribas, Nordea and OP Corporate Bank are joint bookrunners.
The final order book went over €1.7 billion.
Proceeds will be used to refinance existing debt and for general corporate purposes.
Investor calls started Monday for the no-grow Regulation S offering.
The notes will be listed in Luxembourg.
The Helsinki, Finland-based issuer provides services for aggregates production, mining and metals refining.
| Issuer: | Metso Corp.
|
| Amount: | €300 million
|
| Issue: | Sustainability-linked bonds
|
| Maturity: | Nov. 22, 2030
|
| Bookrunners: | Citigroup (billing and delivery), BNP Paribas, Nordea and OP Corporate Bank
|
| Coupon: | 4.375%
|
| Price: | 99.346
|
| Yield: | 4.486%
|
| Spread: | Mid-swaps plus 140 bps
|
| Call features: | Make-whole call at Bunds plus 30 bps; three-month par call
|
| Change of control: | Yes
|
| Trade date: | Nov. 15
|
| Settlement date: | Nov. 22
|
| Ratings: | Moody’s: Baa2
|
| S&P: BBB
|
| Distribution: | Regulation S
|
| Price talk: | Mid-swaps plus 180 bps area, guided to mid-swaps plus 150 bps area
|
| Marketing: | Investor calls
|
| ISIN: | XS2717378231
|
|
|
© 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.
