ThyssenKrupp sets spread talk in €1.35 billion bullet deal; pricing Wednesday

By Paul A. Harris

Portland, Ore., Feb. 18 – ThyssenKrupp AG set spread talk for €1.35 billion of non-callable senior notes (Ba1/BB/BB+), which it is selling in two tranches, according to a market source.

The deal includes a €750 million tranche of notes due Nov. 25, 2020, talked at a 150 basis points spread to mid-swaps.

A €600 million tranche of notes due Feb. 25, 2025 is talked at a 190 bps spread to mid-swaps.

The deal is expected to price shortly.

It is playing to substantial demand, according to the source who added that the book for the short-maturity notes is heard to contain €3 billion-plus of orders from 350 accounts, while orders for the long-dated notes came to €2 billion-plus from 250 accounts.

Joint bookrunner Citigroup will bill and deliver. BayernLB, Commerzbank and UniCredit Bank AG are also joint bookrunners.

The short-maturity notes only will feature a par call three months prior to maturity.

The Essen, Germany-based diversified industrial group plans to use the proceeds for general corporate purposes.

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