By Paul A. Harris
Portland, Ore., Nov. 7 – Faurecia SLB priced an upsized €700 million issue of senior sustainability-linked notes due June 15, 2026 (Ba2/BB/BB+) at par to yield 7¼% on Monday, according to market sources.
The quick-to-market deal increased in size from €550 million after having previously increased from €400 million.
The yield printed at the tight end of the 7¼% to 7½% yield talk. Early guidance was in the 7½% area.
Joint global coordinator, joint physical bookrunner and sole sustainability structuring adviser Societe Generale will bill and deliver. BNP Paribas was also a joint global coordinator and joint physical bookrunner.
Sustainability performance targets an 80% reduction in absolute scope 1 and 2 greenhouse gas emissions by Dec. 31, 2025 from a 2019 base year.
The notes are subject to a 25 basis point coupon step-up per annum unless the sustainability performance target is met.
The notes will be issued via Faurecia SE.
The Paris-based global automotive supplier plans to use the proceeds to pay down the principal of bridge facilities used to finance its acquisition of Hella GmbH & Co. KGaA.
| Issuer: | Faurecia SE
|
| Amount: | €700 million, increased from €400 million, then from €550 million
|
| Issue: | Senior sustainability-linked notes
|
| Maturity: | June 15, 2026
|
| Global coordinators: | Societe Generale (bill and deliver) and BNP Paribas
|
| Joint physical bookrunners: | Societe Generale and BNP Paribas
|
| Joint bookrunners: | Mizuho, Natixis and Santander
|
| Sustainability structuring adviser: | Societe Generale
|
| Co-managers: | Bank of China, Deutsche Bank, IMI - Intesa Sanpaolo and Raiffeisen
|
| Coupon: | 7¼%
|
| Step-ups: | 25 bps annually unless sustainability performance target is met
|
| Price: | Par
|
| Yield: | 7¼%
|
| Spread: | 513 bps
|
| First call: | Nov. 15, 2024 at 103.75
|
| Trade date: | Nov. 7
|
| Settlement date: | Nov. 15
|
| Ratings: | Moody's: Ba2
|
| S&P: BB
|
| Fitch: BB+
|
| Distribution: | Regulation S only
|
| Price talk: | 7¼% to 7½%
|
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