By Paul A. Harris
Portland, Ore., Sept. 6 – Rexel SA priced a €400 million issue of seven-year sustainability-linked senior notes (Ba1/BB+) at par to yield 5¼% on Wednesday, according to market sources.
The yield printed at the tight end of yield talk in the 5 3/8% area. Initial guidance was 5½% to 5¾%.
The notes feature two sustainability performance targets: a 45% reduction in scope 3 greenhouse gas emission intensity related to products sold by Dec. 31, 2025, from a 2016 baseline, and a 38% reduction in scope 1 and 2 greenhouse gas emissions by Dec. 31, 2025, from a 2016 baseline.
They are subject to a 25 basis points step-up in coupon and call premiums if the performance targets are not met.
Global coordinator and active bookrunner Credit Agricole CIB will bill and deliver. BofA, Barclays and Wells Fargo were also global coordinators.
The Paris-based distributor of electrical, heating, lighting and plumbing equipment plans to use the proceeds for general corporate purposes, including financing for the acquisition of Wasco Group BV, a Netherlands-based supplier of HVAC equipment and services.
| Issuer: | Rexel SA
|
| Amount: | €400 million
|
| Issue: | Sustainability-linked senior notes
|
| Maturity: | Sept. 15, 2030
|
| Active bookrunner: | Credit Agricole CIB (bill and deliver)
|
| Global coordinators: | Credit Agricole, BofA, Barclays and Wells Fargo
|
| Co-managers: | Danske and Standard Chartered
|
| Coupon: | 5¼%
|
| Step-up: | 25 bps if performance targets are not met
|
| Price: | Par
|
| Yield: | 5¼%
|
| Spread: | 271 bps
|
| Call protection: | Three years
|
| Trade date: | Sept. 6
|
| Settlement date: | Sept. 13
|
| Ratings: | Moody’s: Ba1
|
| S&P: BB+
|
| Price talk: | 5 3/8% area
|
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