Chicago, March 16 – Repsol International Finance BV, a subsidiary of Repsol SA, sold €750 million of perpetual deeply subordinated securities (Ba1/BB+) at par, according to an announcement.
The notes start with a fixed rate of 2˝% and then the rate converts on March 22, 2027 to a floating rate based on the five-year swap rate plus an increasing margin.
The margin over the swap rate from March 22, 2027 to March 21, 2032 is 276.9 basis points, from March 22, 2032 to March 21, 2047 is 301.9 bps and then steps up to 376.9 bps from March 22, 2047.
Interest may be deferred at the discretion of the issuer.
Proceeds, according to S&P Global Ratings, will used to strengthen the balance sheet, increase financial flexibility and other general purposes.
Repsol, based in Madrid, is a Spanish energy and petrochemical company.
| Issuer: | Repsol International Finance BV
|
| Guarantor: | Repsol SA
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| Issue: | Undated deeply subordinated securities
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| Amount: | €750 million
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| Maturity: | Perpetual
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| Coupon: | 2˝% initial rate; converts to floating rate on March 22, 2027 at five-year swap rate plus 267.9 bps for five years, 301.9 bps for next 25 years and then to 376.9 bps with no further step ups
|
| Price: | Par
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| Yield: | 2˝% initial yield
|
| Call features: | Callable on certain dates or upon the occurrence of certain events
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| Trade date: | March 15
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| Settlement date: | March 22
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| Ratings: | Moody’s: Ba1
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| S&P: BB+
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