Published on 9/28/2018 in the Prospect News High Yield Daily.
New Issue: El Corte Ingles prices €600 million 5.5-year notes at par to yield 3%
By Paul A. Harris
Portland, Ore., Sept. 28 – El Corte Ingles, SA priced a €600 million issue of 5.5-year senior notes (Ba1/BB+/BB+) at par to yield 3% on Friday, according to market sources.
The yield printed at the tight end of the 3% to 3¼% yield talk.
The deal came with a fall-away provision which would strip some of the more restrictive high-yield covenants from the agreement if the issuer attains investment-grade ratings from two of the three ratings agencies, Moody's Investors Service, S&P Global Ratings and Fitch Ratings, an investor said.
Physical bookrunner BofA Merrill Lynch will bill and deliver. Goldman Sachs International was also a physical bookrunner.
Santander, BNP Paribas, Caixa, Sabadell, Credit Agricole CIB, Credit Suisse, SG CIB, UniCredit Bank, Deutsche Bank, Bankia and BBVA were joint bookrunners.
The Madrid-based department store operator plans to use the proceeds for general corporate purposes, including debt repayment.
| Issuer: | El Corte Ingles, SA
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| Amount: | €600 million
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| Maturity: | March 15, 2024
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| Securities: | Senior notes
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| Physical bookrunners: | BofA Merrill Lynch (bill and deliver), Goldman Sachs International
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| Joint bookrunners: | Santander, BNP Paribas, Caixa, Sabadell, Credit Agricole CIB, Credit Suisse, SG CIB, UniCredit Bank, Deutsche Bank, Bankia, BBVA
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| Coupon: | 3%
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| Price: | Par
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| Yield: | 3%
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| First call: | Make-whole call at Bunds plus 50 bps until Oct. 15, 2020, then callable at 103.5
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| Equity clawback: | 40% at 103 until Oct. 15, 2020
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| Trade date: | Sept. 28
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| Settlement date: | Oct. 8
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| Ratings: | Moody's: Ba1
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| S&P: BB+
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| Fitch: BB+
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| Distribution: | Rule 144A and Regulation S
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| Price talk: | 3% to 3½%
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| Marketing: | Roadshow
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