By Paul A. Harris
Portland, Ore., July 14 – Amsterdam-based discount retailer HEMA BV priced a downsized €750 million amount of high-yield notes on Friday, a market source said.
HEMA BondCo I BV priced a downsized and restructured €600 million issue of five-years senior secured floating-rate notes (B2/B-) at a 625 basis points spread to Euribor with a 0% Euribor floor. The issue size was decreased from €610 million. The spread came 25 bps beyond the wide end of the 575 bps to 600 bps spread talk (talk also specified a 0% Euribor floor). Call protection was increased to two years from one year.
In addition HEMA BonCo II BV priced €150 million of 5.5-year senior unsecured fixed-rate notes (Caa2/CCC) with an 8½% coupon. Price talk was in the 8½% area.
Bookrunner Credit Suisse will bill and deliver. ABN Amro, ING, JPMorgan and RBS were also joint bookrunners.
The overall transaction size was decreased from €760 million.
Proceeds, together with cash on hand, are expected to be used to pay off the company's existing secured floating-rate notes, secured fixed-rate notes and unsecured notes and pay off its existing purchase money obligation facility.
| Company: | HEMA BV
|
| Amount: | €750 million
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| Bookrunners: | Credit Suisse (bill and deliver), ABN Amro, ING, JPMorgan, RBS
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| Trade date: | July 14
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| Distribution: | Rule 144A and Regulation S
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| Marketing: | Roadshow
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|
|
| Secured notes
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| Issuer: | HEMA BondCo I BV
|
| Amount: | €600 million, decreased from €610 million
|
| Maturity: | July 2022
|
| Securities: | Senior secured floating-rate notes
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| Coupon: | Euribor plus 625 bps
|
| Euribor floor: | 0%
|
| Call protection: | Two years, increased from one year
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| Ratings: | Moody's: B2
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| S&P: B-
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| Price talk: | Euribor plus 575 bps to 600 bps, 0% Euribor floor
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|
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| Unsecured notes
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| Issuer: | HEMA BondCo II BV
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| Amount: | €150 million
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| Maturity: | January 2023
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| Securities: | Senior unsecured fixed-rate notes
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| Coupon: | 8½%
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| Call protection: | Two years
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| Ratings: | Moody's: Caa2
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| S&P: CCC
|
| Price talk: | 8½% area
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