Chicago, Jan. 11 – Pirelli & C. SpA priced €600 million of 4.25% sustainability bonds with a five-year tenor (BBB-/BBB-) on Wednesday, according to a source involved in the deal.
Pirelli Tyre SpA is guaranteeing the bonds.
The bonds priced at 99.704 to yield 4.317%, or at mid-swaps plus 145 basis points. Initial price talk was mid-swaps plus 190 bps to 200 bps.
The coupon will be tied to two key performance indicators involving GHG emissions. If the company fails to meet its targets on either one of the indicators, the rate will step up 25 basis points. If neither goal is met, the rate will step up 50 bps.
The notes can be called early with a Bunds plus 35 bps make-whole premium until one month before the maturity date. In the final month, they can be redeemed at par.
BNP Paribas and BofA Securities are the global coordinators and sustainability structuring agents for the Regulation S deal.
Barclays, Deutsche Bank, IMI-Intesa Sanpaolo, Mizuho and UniCredit are bookrunners.
At guidance, the orderbook hit €4.5 billion.
Proceeds will be used for general corporate purposes.
The issue will be listed in Luxembourg.
Based in Milan, Pirelli is a tire company with a presence in more than 160 countries.
| Issuer: | Pirelli & C. SpA
|
| Guarantor: | Pirelli Tyre SpA
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| Amount: | €600 million
|
| Issue: | Sustainability bonds
|
| Maturity: | Jan. 18, 2028
|
| Bookrunners: | BNP Paribas (billing and delivery), BofA Securities (global coordinators), Barclays, Deutsche Bank, IMI-Intesa Sanpaolo, Mizuho and UniCredit
|
| Coupon: | 4.25%
|
| Price: | 99.704
|
| Yield: | 4.317%
|
| Spread: | Mid-swaps plus 145 bps
|
| Call features: | Make-whole call at Bunds plus 35 bps until one month before maturity; thereafter at par
|
| Change of control: | Yes
|
| Trade date: | Jan. 11
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| Settlement date: | Jan. 18
|
| Ratings: | S&P: BBB-
|
| Fitch: BBB-
|
| Distribution: | Regulation S
|
| Price talk: | Mid-swaps plus 190 bps to 200 bps
|
| Marketing: | Investor calls
|
| ISIN: | XS2577396430
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