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Rexel selling €600 million seven-year sustainability-linked notes; price talk 2¼% area
By Paul A. Harris
Portland, Ore., Nov. 2 – France-based Rexel is in the market with a €600 million offering of seven-year sustainability-linked senior notes (expected ratings Ba3/BB-), sources say.
Price talk is in the 2¼% area.
The deal is expected to price on Wednesday.
Joint global coordinator and joint active bookrunner BNP Paribas will bill and deliver. CIC and ING are also joint global coordinators and joint active bookrunners.
The notes will rank pari passu with Rexel’s senior credit facility and other senior unsecured notes and will become callable in December 2024.
The notes are being issued in accordance with Rexel's new sustainability-linked bond framework, which is administered by ICMA and reviewed by Vigeo Eiris, who provided a second party opinion on Oct. 22, 2021.
Both the framework and the second party opinion are available on the company’s website, www.rexel.com/en/finance/debt/#slb.
Under the framework, Rexel committed to achieve two key performance indicators:
• A 23% reduction in greenhouse gas emissions related to the consumption of products sold, per euro of turnover, by Dec. 31, 2023 from a 2016 baseline, and
• A 23.7% reduction in greenhouse gas emissions related to energy consumption in its operations by Dec. 31, 2023 from a 2016 baseline.
The interest rate of the notes increases by 25 basis points from June 15, 2024 if Rexel does not achieve these sustainability performance targets.
Proceeds from the new sustainability-linked notes plus available cash will be used to fully redeem the company's euro-denominated 2¾% senior notes due June 2026.
Rexel, based in Paris, specializes in the distribution of electrical, heating, lighting and plumbing equipment.
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