Published on 11/2/2017 in the Prospect News High Yield Daily.
New Issue: Constellium prices upsized $500 million, €400 million notes due 2026
By Paul Deckelman
New York, Nov. 2 – Constellium NV priced an upsized $500 million offering of senior notes and €400 million of senior notes, both due in February 2026 (B3/B-), according to market sources.
The dollar-denominated portion of that two-part bond deal was upsized from an originally announced $450 million while the euro-denominated tranche was unchanged
The dollar-denominated notes priced at par to yield 5 7.8%.
The euro-denominated notes priced at par to yield 4¼%
The was brought to market via a large and complex consortium of underwriters.
Deutsche Bank was the left bookrunner for both tranches of the Rule 144A and Regulation S transaction.
Credit Suisse, BofA Merrill Lynch, Goldman Sachs, JPMorgan and Wells Fargo Securities were also bookrunners for the dollar-denominated notes, while Credit Suisse, Barclays, BNP Paribas, Credit Mutual and HSBC were also bookrunners for the euro-denominated portion.
Both tranches will be non-callable for three years and then become callable at par plus 50% of their respective coupons.
Both tranches have a three-year equity clawback provision for up to 35% of the issue.
Amsterdam-based Constellium, a maker of rolled and extruded aluminum products, plans to use the proceeds from the notes, along with funds from an offering of class A ordinary shares and cash on hand, to fund tender offers for its $425 million of 7 7/8% senior secured notes due 2021, its €250 million of 7% senior notes due 2023 and its $400 million of 8% senior notes due 2023 and to redeem any notes that remain outstanding after the tender offers, which will end on Nov. 6.
| Issuer: | Constellium NV
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| Security: | Senior notes
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| Maturity: | Feb. 15, 2026
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| Price: | Par
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| Change of control: | 101% put
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| Trade date: | Nov. 2
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| Settlement date: | Nov. 9
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| Ratings: | Moody’s: B3
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| S&P: B-
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| Marketing: | Roadshow
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| Dollar denominated notes
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| Amount: | $500 million (upsized from $450 million)
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| Bookrunners: | Deutsche Bank (left), Credit Suisse, BofA Merrill Lynch, Goldman Sachs, JPMorgan, Wells Fargo Securities
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| Co-managers: | BNP Paribas, Barclays, Citigroup and HSBC
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| Coupon: | 5 7/8%
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| Yield: | 5 7/8%
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| Spread: | 357 bps
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| Call feature: | Non-callable for three years, then callable starting Nov. 15, 2020 at 102.938, callable starting Nov. 15, 2021 at 101.469, then finally callable at par starting Nov. 15, 2022
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| Equity clawback: | For up to 35% at 105.875 until Nov. 15, 2020
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| Euro denominated notes
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| Amount: | €400 million
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| Bookrunners: | Deutsche Bank (left) plus Credit Suisse, Barclays, BNP Paribas, Credit Mutual, HSBC
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| Co-managers: | BofA Merrill Lynch, Goldman Sachs, JPMorgan, Societe Generale
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| Coupon: | 4¼%
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| Yield: | 4¼%
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| Spread: | 412 bps
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| Call features: | Non-callable for three years, then callable starting Nov. 15, 2020 at 102.125, callable starting Nov. 15, 2021 at 101.063, then finally callable at par starting Nov. 15, 2022
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| Equity clawback: | For up to 35% at 104.25 until Nov. 15, 2020
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