By Devika Patel
Knoxville, Tenn., April 5– EQT AB priced €1.5 billion of sustainability-linked senior global notes (//A-) in two tranches, according to a market source.
The company sold €750 million of 2.375% notes due 2028 at 99.531 to yield 2.46% with a spread of mid-swaps plus 130 basis points.
EQT priced €750 million of 2.875% notes due 2032 at mid-swaps plus 165 bps. These notes were priced at 99.41 to yield 2.944%.
The six-year notes were being talked to yield in the mid-swaps plus 135 bps area and the 10-year notes were being talked to yield in the mid-swaps plus 170 bps area.
The amount of orders in the combined books was in excess of €3.5 billion, which was evenly split between the two tranches, at the time guidance was released.
The coupon is linked to a 2025 goal of 40% of eligible EQT funds’ private and listed equity portfolio companies by euro-denominated invested capital setting science-based targets approved by the Science Based Target Initiative.
If the goal is not met, there will be a one-time step-up in the coupon of 25 bps for the 2028 notes and 20 bps for the 2032 notes.
The joint lead bookrunners for the offering were Morgan Stanley & Co. International plc, BNP Paribas, Goldman Sachs Bank Europe SE, J.P. Morgan SE, Nordea Bank Abp and Skandinaviska Enskilda Banken AB.
Proceeds will be used in connection with the company’s planned acquisition of Baring Private Equity Asia.
The global investment organization is based in Sweden.
| Issuer: | EQT AB
|
| Amount: | €1.5 billion
|
| Issue: | Sustainability-linked senior global notes
|
| Bookrunners: | Morgan Stanley & Co. International plc, BNP Paribas, Goldman Sachs Bank Europe SE, J.P. Morgan SE, Nordea Bank Abp and Skandinaviska Enskilda Banken AB
|
| Co-managers: | Credit Agricole CIB, DNB Markets, Mizuho Securities, NatWest Markets and Swedbank
|
| Call feature: | At 101 if acquisition is not completed by May 31, 2023
|
| Settlement date: | April 6
|
| Ratings: | Fitch: A-
|
| Distribution: | Regulation S
|
|
|
| Six-year bonds
|
| Amount: | €750 million
|
| Maturity: | April 6, 2028
|
| Coupon: | 2.375%
|
| Price: | 99.531
|
| Yield: | 2.46%
|
| Spread: | Mid-swaps plus 130 bps
|
| Call: | Make-whole call at Bunds plus 30 bps
|
| ISIN: | XS2463988795
|
| Talk: | Mid-swaps plus 135 bps area
|
|
|
| 10-year bonds
|
| Amount: | €750 million
|
| Maturity: | April 6, 2032
|
| Coupon: | 2.875%
|
| Price: | 99.41
|
| Yield: | 2.944%
|
| Spread: | Mid-swaps plus 165 bps
|
| Call: | Make-whole call at Bunds plus 35 bps
|
| ISIN: | XS2463990775
|
| Talk: | Mid-swaps plus170 bps area
|
|
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