ICBPI sets roadshow for €600 million secured PIK toggle notes

By Paul A. Harris

Portland, Ore., Feb. 6 – Milan-based financial services provider Instituto Centrale delle Banche Popolari Italiane SpA (ICBPI) plans to market a €600 million offering of senior secured fixed-rate PIK toggle notes due May 30, 2021 (existing ratings B3/B) in London on Tuesday and Wednesday, according to a market source.

Further details on the timing of the deal will be announced, the source added.

Global coordinator Deutsche Bank will bill and deliver for the Rule 144A and Regulation S for life offering. BofA Merrill Lynch is also a global coordinator.

HSBC, UBS, Banca IMI, JPMorgan and Goldman Sachs are joint bookrunners.

The notes feature a Bunds plus 50 basis points make-whole call until Nov. 30, 2017, then become callable at par plus 50% of the coupon. They also feature a 40% equity clawback at par plus the coupon until Nov. 30, 2017.

Proceeds will be used to fund the acquisitions of the merchant acquiring business of Banca Monte dei Paschi di Siena, as well as Bassilichi SpA and DB Cards, or for general corporate purposes.

The issuing entity will be Mercury Bondco plc, the majority shareholder of ICBPI.

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