By Paul A. Harris
Portland, Ore., Feb. 29 – French automotive components supplier Forvia (formerly Faurecia) priced an upsized €1 billion of senior notes (Ba2/BB/BB+) in two tranches on Thursday, according to a market source.
The deal, which was upsized from €800 million, included €500 million of five-year notes that priced at par to yield 5 1/8%, in the middle of yield talk in the 5 1/8% area. Initial guidance was in the low-to-mid 5% area.
The company also priced €500 million of seven-year notes at par to yield 5½%, at the tight end of yield talk in the 5 5/8% area. Initial guidance was in the mid-to-high 5% area.
Proceeds will be used to repay the company’s 2 5/8% notes due 2025 and the 7¼% notes due 2026 by means of a concurrent tender offer and to repay other outstanding debt.
| Issuer: | Forvia
|
| Amount: | €1 billion, increased from €800 million
|
| Issue: | Senior notes
|
| Global coordinators: | Credit Agricole CIB (bill and deliver) and MUFG
|
| Joint active bookrunners: | Credit Agricole, MUFG, BofA and Santander
|
| Joint bookrunners: | CIC, IMI-Intesa Sanpaolo and Natixis
|
| Trade date: | Feb. 29
|
| Ratings: | Moody’s: Ba2
|
| S&P: BB
|
| Fitch: BB+
|
|
|
| Five-year notes
|
| Amount: | €500 million
|
| Tenor: | Five years
|
| Coupon: | 5 1/8%
|
| Price: | Par
|
| Yield: | 5 1/8%
|
| Call protection: | Two years
|
| Price talk: | 5 1/8% area
|
|
|
| Seven-year notes
|
| Amount: | €500 million
|
| Tenor: | Seven years
|
| Coupon: | 5½%
|
| Price: | Par
|
| Yield: | 5½%
|
| Call protection: | Three years
|
| Price talk: | 5 5/8% area
|
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