Chicago, April 24 – Mahle GmbH priced an upsized €500 million offering of 6½% senior notes due 2031 (Ba2/BB) at par on Wednesday, according to market source.
Official talk was 6½% to 6¾%, tight to initial guidance in the high-6% area.
The Rule 144A and Regulation S for life notes come with three years of call protection. The make-whole call premium is Bunds plus 50 basis points. Then, the notes are callable at par plus half the coupon, one-quarter of the coupon and then at par, with annual step-downs.
Physical bookrunner Deutsche Bank is handling billing and delivery. BNP Paribas, Citigroup and JPMorgan are also physical bookrunners.
Commerzbank, HSBC, LBBW and UniCredit are passive bookrunners.
The Stuttgart, Germany-based automotive parts manufacturer plans to use the proceeds to repay promissory notes and private placement corporate bonds, and for general corporate purposes.
The incremental proceeds resulting from the $100 million upsize of the deal will be used for general corporate purposes, including debt repayment.
Issuer: | Mahle GmbH
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Amount: | €500 million
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Issue: | Senior notes
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Maturity: | May 2, 2031
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Bookrunners: | Deutsche Bank (billing and delivery), BNP Paribas, Citigroup, JPMorgan (active), Commerzbank, HSBC, LBBW and UniCredit
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Coupon: | 6½%
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Price: | Par
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Yield: | 6½%
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Call features: | Make-whole call at Bunds plus 50 bps until May 2, 2027; at 103.25 starting May 2, 2027; at 101.625 starting May 2, 2028 and at par thereafter
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Trade date: | April 24
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Settlement date: | May 2
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Ratings: | Moody’s: Ba2
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| S&P: BB
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Distribution: | Rule 144A and Regulation S
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Price talk: | 6½% to 6¾%
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ISIN: | XS2810867742, XS2810867825
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