By Paul A. Harris
Portland, Ore., Nov. 3 – France-based Rexel SA priced a €600 million issue of seven-year sustainability-linked senior notes (Ba3/BB-) at par to yield 2 1/8% on Wednesday, sources say.
The yield printed at the tight ends of yield talk and initial guidance, both of which had been set in the 2¼% area.
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. Passive bookrunners were Bayern LB, BBVA, Commerzbank and Natixis.
The notes are 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.
| Issuer: | Rexel SA
|
| Amount: | €600 million
|
| Maturity: | Dec. 15, 2028
|
| Securities: | Senior notes
|
| Global coordinators: | BNP Paribas (bill and deliver), CIC and ING
|
| Active bookrunners: | BNP, CIC and ING
|
| Passive bookrunners: | Bayern LB, BBVA, Commerzbank and Natixis
|
| Co-managers: | Danske and Standard Chartered
|
| Coupon: | 2 1/8%
|
| Price: | Par
|
| Yield: | 2 1/8%
|
| Spread: | 249 bps
|
| Call protection: | Three years
|
| Trade date: | Nov. 3
|
| Settlement date: | Nov. 10
|
| Ratings: | Moody's: Ba3
|
| S&P: BB-
|
| Distribution: | Regulation S
|
| Price talk: | 2¼% area
|
|
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