Chicago, March 19 – SW (Finance) I plc priced £550 million of 16-year sustainability bonds (Baa3/BBB/BBB) on Tuesday, according to a market source.
The bonds priced with a 7% coupon at a reoffer price of 99.514 to yield 7.05%, or at Gilts plus 255 basis points.
Initial talk was in the Gilts plus 275 bps area, with a revision in guidance to Gilts plus 255 bps to 260 bps.
Call protection is a make-whole premium at Gilts plus 40 bps.
The notes are guaranteed by Southern Water Services Ltd., SWS Holdings Ltd., SW (Finance) II Ltd. and SWS Group Holdings Ltd.
Lloyds (billing and delivery), BNP Paribas, National Australia Bank Ltd. and SMBC Nikko were the active bookrunners.
Books closed on orders in excess of £1.5 billion.
Proceeds will be used to finance an eligible green portfolio.
The company is a subsidiary of Worthing, U.K.-based Southern Water Services Ltd.
| Issuer: | SW (Finance) I plc
|
| Guarantors: | Southern Water Services Ltd., SWS Holdings Ltd., SW (Finance) II Ltd. and SWS Group Holdings Ltd.
|
| Amount: | £550 million
|
| Issue: | Sustainability bonds
|
| Maturity: | April 16, 2040
|
| Bookrunners: | Lloyds (billing and delivery), BNP Paribas, National Australia Bank Ltd. and SMBC Nikko
|
| Coupon: | 7%
|
| Price: | 99.514
|
| Yield: | 7.05%
|
| Spread: | Gilts plus 255 bps
|
| Call features: | Make-whole call at Gilts plus 40 bps
|
| Trade date: | March 19
|
| Settlement date: | March 26
|
| Ratings: | Moody’s: Baa3
|
| S&P: BBB
|
| Fitch: BBB
|
| Distribution: | Regulation S
|
| Price talk: | Gilts plus 275 bps area, guided to Gilts plus 255 bps to 260 bps
|
| ISIN: | XS2793261301
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