New York, Nov. 6 – Rexel priced a €500 million offering of senior notes due 2025 (expected: Ba3/BB-/BB) with a 2 1/8% coupon, according to a company announcement.
Credit Agricole Corporate and Investment Bank, HSBC Bank plc and Societe Generale are joint lead bookrunners and global coordinators for the offering, which was sold under Regulation S. Barclays Bank plc, Credit Industriel et Commercial SA, ING Bank NV, London Branch and Natixis are also joint bookrunners.
The notes are callable starting after three years.
Proceeds along with available cash will be used to redeem Rexel’s 3¼% senior notes due June 2022 that were issued in May 2015. The redemption is planned for Dec. 15.
Rexel said that the transactions will allow it to extend its debt maturities and lower its cost of financing.
“The success of this new 7.5-year note issuance confirms investor confidence in Rexel’s business model and strategy. It will allow us to refinance the 3.250% notes issued in 2015 at a significantly lower cost,” said Patrick Berard, the company’s chief executive officer, in a news release.
Rexel is a Paris-based distributor of electrical equipment.
| Issuer: | Rexel
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| Issue: | Senior notes
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| Amount: | €500 million
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| Maturity: | June 15, 2025
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| Coupon: | 2 1/8%
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| Call: | December 2020 onwards
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| Bookrunners: | Credit Agricole Corporate and Investment Bank, HSBC Bank plc, Societe Generale (global coordinators), Barclays Bank plc, Credit Industriel et Commercial SA, ING Bank NV, London Branch, Natixis
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| Ratings: | Moody’s: Ba3 (expected)
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| S&P: BB- (expected)
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| Fitch: BB (expected)
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| Pricing date: | Nov. 6
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| Settlement date: | Nov. 20
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| Distribution: | Regulation S
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| Marketing: | Quick to market
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