Chicago, Sept. 5 – Orange SA priced €500 million of 3.875% 12-year sustainability-linked bonds (Baa1/BBB+/BBB+), according to a market source regarding the Monday-pricing transaction.
The bonds priced at 99.906 to yield 3.885%, or at mid-swaps plus 72 basis points.
Initial price talk was mid-swaps plus 105 bps to 110 bps. Pricing was guided to the mid-swaps plus 80 bps area as the order book went to €3 billion a few hours into the session.
The key performance indicators are tied to reductions in absolute scope emissions in the digital segment and reaching 6 million of external beneficiaries of digital support and trainings from 2021 to 2030.
The target observation date is Dec. 31, 2030 when Orange needs to meet both targets.
The coupon will step up 25 bps per year if only one or none of the targets has been met, starting Sept. 11, 2033 to the maturity date, capped at a cumulative 75 bps.
The notes are callable with a make-whole premium of OATs plus 15 bps and then have a three-month par call option.
The global coordinators were SMBC (billing and delivery), Credit Agricole CIB and ING.
Joining the global coordinators, the active bookrunners were Barclays, Deutsche Bank AG, Goldman Sachs Bank Europe SE, La Banque Postale and Standard Chartered Bank AG.
Proceeds will be used for general corporate purposes.
The final order book was over €1.95 billion.
The bonds will be listed in Paris.
The telecommunications company is based in Paris.
| Issuer: | Orange SA
|
| Amount: | €500 million
|
| Issue: | Senior sustainability-linked bonds
|
| Maturity: | Sept. 11, 2035
|
| Bookrunners: | SMBC (billing and delivery), Credit Agricole CIB, ING, Barclays, Deutsche Bank AG, Goldman Sachs Bank Europe SE, La Banque Postale and Standard Chartered Bank AG
|
| ESG adviser: | Credit Agricole CIB
|
| Coupon: | 3.875%
|
| Price: | 99.906
|
| Yield: | 3.885%
|
| Spread: | Mid-swaps plus 72 bps
|
| Call features: | Make-whole call at OATs plus 15 bps; three-month par call
|
| Trade date: | Sept. 4
|
| Settlement date: | Sept. 11
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| Ratings: | Moody’s: Baa1
|
| S&P: BBB+
|
| Fitch: BBB+
|
| Distribution: | Regulation S
|
| Price talk: | Mid-swaps plus 105 bps to 110 bps
|
| ISIN: | FR001400KKM2
|
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