By Paul A. Harris
Portland, Ore., Feb. 18 – ThyssenKrupp AG priced €1.35 billion of non-callable senior notes (Ba1/BB/BB+) in two tranches on Wednesday, according to a market source.
The deal included a €750 million tranche of 1¾% notes due Nov. 25, 2020, which priced at a 150 basis points spread to mid-swaps, on top of spread talk. The 1¾% notes were sold at a reoffer price of 99.328 to yield 1 7/8%.
A €600 million tranche of 2½% 10-year notes priced at mid-swaps plus 190 bps, also on top of spread talk. The 2½% notes were sold at a reoffer price of 98.818 to yield 2.636%.
The deal played to substantial demand, according to the source, who added that the book for the short-maturity notes was 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 Essen, Germany-based diversified industrial group plans to use the proceeds for general corporate purposes.
| Issuer: | ThyssenKrupp AG
|
| Face amount: | €1.35 billion
|
| Proceeds: | €1.34 billion
|
| Securities: | Senior notes
|
| Bookrunners: | Citigroup (bill and deliver), BayernLB, Commerzbank, UniCredit Bank AG
|
| Trade date: | Feb. 18
|
| Settlement date: | Feb. 25
|
| Ratings: | Moody's: Ba1
|
| Standard & Poor's: BB
|
| Fitch: BB+
|
| Format: | Euro medium-term notes program
|
| Marketing: | Quick to market
|
|
|
| Notes due 2020
|
| Face amount: | €750 million
|
| Proceeds: | €745 million
|
| Maturity: | Nov. 25, 2020
|
| Coupon: | 1¾%
|
| Price: | 99.328
|
| Yield: | 1 7/8%
|
| Spread: | 150 bps over mid-swaps
|
| Call protection: | Par call three months prior to maturity, otherwise non-callable
|
| Price talk: | Mid-swaps plus 150 bps
|
|
|
| Notes due 2025
|
| Face amount: | €600 million
|
| Proceeds: | €593 million
|
| Maturity: | Feb. 25, 2025
|
| Coupon: | 2½%
|
| Price: | 98.818
|
| Yield: | 2.636%
|
| Spread: | 190 bps over mid-swaps
|
| Call protection: | Non-callable
|
| Price talk: | Mid-swaps plus 190 bps
|
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