Germany’s thyssenkrupp Elevator kicks off €4.05 billion five-part notes in dollar, euro tranches

By Paul A. Harris

Portland, Ore., June 24 – Germany-based elevator technology company thyssenkrupp Elevator was set to kick off a €4.05 billion equivalent five-part offering of high-yield notes on a mid-morning conference call with bond investors on Wednesday, according to a syndicate source.

A roadshow for the deal starts Thursday and runs through July 1.

The offer comes in tranches of dollar-denominated and euro-denominated notes.

Tranches are as follows:

• $1.4 billion (€1.25 billion equivalent) of senior secured notes due 2027 (B1/expected B/B+) callable after three years at par plus 50% of the coupon;

• Approximately $450 million (€400 million equivalent) of senior unsecured notes due 2028 (Caa1/expected CCC/CCC+) callable after three years at par plus 50% of the coupon;

• €750 million of senior secured notes due 2027 (B1/expected B/B+) callable after three years at par plus 50% of the coupon;

• €1 billion of floating-rate senior notes due 2027 (Caa1/expected CCC/CCC+) callable after one year at 101; and

• €650 million of senior notes due 2028 (Caa1/expected CCC/CCC+) callable after three years at par plus 50% of coupon.

Global coordinator Goldman Sachs & Co. LLC will bill and deliver for the dollar-denominated notes. Global coordinator Barclays will bill and deliver for the euro-denominated unsecured notes. Global coordinator Credit Suisse will bill and deliver for the euro-denominated secured notes.

Deutsche Bank, RBC and UBS are joint bookrunners.

Proceeds from the Rule 144A and Regulation S for life deal, together with senior term facilities, private senior notes and an equity contribution will be used to fund the buyout of the company by Advent International, Cinven and RAG-Stiftung.

The issuing entities will be Vertical Midco GmbH, Vertical U.S. Newco Inc. and Vertical Holdco GmbH.

The acquisition of thyssenkrupp, which is based in Essen, Germany, is expected to close by the end of the third quarter of 2020.

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