By Susanna Moon
Chicago, July 15 – Pegas Nonwovens SA said it sold about €100 million equivalent of senior bonds in three private issues.
The company issued the following bonds:
• CZK 678 million 10-year senior bonds at six-month Pribor plus 200 basis points;
• €35 million of 3.39% 10-year senior bonds; and
• CZK 1.08 billion of 2.646% of seven-year senior bonds.
Both of the issues denominated in Czech crowns were hedged against foreign exchange risks through a euro/Czech crown currency swap, according to a company press release.
Proceeds will be used to repay bank loans, to buy back some bonds maturing in November 2018 and for more investments, including a possible buyback of the company's shares.
“This bond issue provides the company with a substantial level of security with regards to the financing of its long term development and enables it to fully concentrate on its strategic objectives,” Frantisek Rezac, chief executive officer and member of the board of Pegas, said in the press release.
“At the same time, considering the achieved advantageous conditions, the company’s interest expenses will be reduced and it will be hedged against a potential future increase in interest rates.”
Pegas is a producer of spunmelt nonwovens based in Primeticka, Czech Republic.
| Issuer: | Pegas Nonwovens SA
|
| Issue: | Senior bonds
|
| Amount: | €35 million and CZK 1.758 billion
|
| Pricing date: | July 15
|
|
|
| 10-year floaters
|
| Amount: | CZK 678 million
|
| Maturity: | July 14, 2025
|
| Coupon: | Pribor plus 200 bps
|
|
|
| 10-year fixed-rate bonds
|
| Amount: | €35 million
|
| Maturity: | July 14, 2025
|
| Coupon: | 3.39%
|
|
|
| Seven-year fixed-rate bonds
|
| Amount: | CZK 1.08 billion
|
| Maturity: | July 14, 2022
|
| Coupon: | 2.646%
|
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