Philips Domestic Appliances downsizes to €650 million, sets talk on secured notes in 3 1/8% area

By Paul A. Harris

Portland, Ore., June 11 – Special purpose vehicle Nobel Bidco BV downsized its offering of seven-year senior secured notes (B1/B+) to €650 million from €850 million, shifting proceeds to the concurrent bank loan, according to a London-based sellside source.

Final talk on the notes tightened to the 3 1/8% area from earlier talk of 3¼% to 3½%. Initial guidance was in the mid-3% area.

The deal, backing the leveraged buyout of Philips Domestic Appliances by Hillhouse Capital, is expected to price on Friday.

Global coordinator and joint bookrunner JPMorgan will bill and deliver. HSBC and Deutsche Bank are also global coordinators and joint bookrunners. BofA and ING are joint bookrunners.

The Rule 144A and Regulation S notes become callable after three years at par plus 50% of the coupon.

Proceeds will be used to fund the acquisition of Netherlands-based Royal Philips' domestic appliances division by Hillhouse capital, and fund cash on the balance sheet.

Concurrently with the downsizing of the bonds, the bank loan was upsized by €200 million, to €1.05 billion.

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