Germany's Xella talks €200 million toggle notes at 9¼% cash coupon

By Paul A. Harris

Portland, Ore., Oct. 10 - Xella HoldCo Finance SA set final cash-pay coupon talk for its €200 million offering of five-year PIK toggle notes (expected B3/confirmed B-) in the 9¼% area, an informed source said on Thursday.

Initial cash-pay coupon talk was 9½% to 9¾%.

The coupon will step up by 75 basis points in the event of a PIK payment.

The deal is expected to price Thursday.

Global coordinator Morgan Stanley will bill and deliver. Goldman Sachs is also a global coordinator.

BNP Paribas, UniCredit and Credit Agricole CIB are the joint bookrunners.

The notes become callable in 1.5 years at par plus 50% of the coupon.

The Duisburg, Germany-based building materials manufacturer plans to use the proceeds to finance the acquisition of vendor loan notes from Haniel Group and to put cash on its balance sheet.

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