Austria's Fimag to sell €75 million five-year notes

By Paul Deckelman

New York, June 2 - Austria-based Fimag Finanz Industrie Management AG plans to sell €75 million of five-year notes to investors in Europe, high-yield primary market sources said Thursday.

The deal will be brought to market by two Austrian banks - Erste Bank and RZB - and was being shopped to investors via a roadshow that began Thursday in Vienna. Pricing is expected sometime in the middle of next week.

Proceeds from the bond deal will be used to finance the company's expansion in central and Eastern Europe.

Rumored price talk on the deal calls for a spread over swaps of 165 to 175 basis points.

The deal will be marketed primarily to Austrian investors, and perhaps to selected German accounts as well.

Fimag, headquartered in Spittal An Der Drau, Karnten, Austria, has interests in construction through its Bauholding Strabag SE subsidiary, and in the operation of toll highways through its A-Way unit. This deal marks the first time it is directly accessing the capital markets.

Bauholding Strabag is Austria's largest construction company, with operations in the country as well as in Germany, Hungary and elsewhere in Central and Eastern Europe.

Bauholding has three issues of BB rated medium-term notes outstanding. The upcoming issue by its corporate parent has not been rated by the agencies.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.