By Lisa Kerner
Charlotte, N.C., Nov. 16 - SAP AG said its subsidiary SAP Ireland US-Financial Services Ltd. completed a $1.4 billion U.S. private placement of notes with 33 institutional investors, 17 of which are new to SAP credit.
Proceeds will be used to refinance existing group debt.
The offer received strong demand, according to a company news release, and was issued in five tranches as follows:
• $242.5 million tranche with a five-year maturity;
• $290 million tranche with an eight-year maturity;
• $444.5 million tranche with a 10-year maturity;
• $323 million tranche with a 12-year maturity; and
• $100 million tranche with a 15-year maturity.
The interest rates on the notes across all tranches range from 2.13% in the five-year tranche to 3.53% in the 15-year tranche.
JPMorgan, Goldman Sachs and Royal Bank of Scotland acted as joint lead agents for the transaction.
SAP said the transaction represents one of the largest U.S. private placements of notes in 2012 and the largest cross-border U.S. private placement of notes ever.
Based in Walldorf, Germany, SAP is a provider of business software.
| Issuer: | SAP Ireland US-Financial Services Ltd.
|
| Issue: | Notes
|
| Amount: | $1.4 billion
|
| Agents: | JPMorgan, Goldman Sachs and Royal Bank of Scotland
|
| Announcement date: | Nov. 16
|
| Distribution: | Private placement
|
|
|
| Tranche 1
|
| Amount: | $242.5 million
|
| Maturity: | Five years
|
| Coupon: | 2.13%
|
|
|
| Tranche 2
|
| Amount: | $290 million
|
| Maturity: | Eight years
|
|
|
| Tranche 3
|
| Amount: | $444.5 million
|
| Maturity: | 10 years
|
|
|
| Tranche 4
|
| Amount: | $323 million
|
| Maturity: | 12 years
|
|
|
| Tranche 5
|
| Amount: | $100 million
|
| Maturity: | 15 years
|
| Coupon: | 3.53%
|
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