By Paul A. Harris
Portland, Ore., Oct. 21 – Schaeffler Holding Finance BV priced €1.25 billion equivalent of senior secured PIK toggle notes (B1/B/) in three tranches on Tuesday, according to a market source.
In order of maturities the deal included a $475 million tranche of five-year notes, which priced at par to yield 6¼%, at the tight end of the 6¼% to 6½% yield talk.
Schaeffler also priced an upsized €350 million tranche of 5¾% seven-year notes at 98.576 to yield 6%. The tranche was upsized from €300 million. The yield printed at the tight end of the 6% to 6¼% yield talk.
The long-dated paper came in a $675 million tranche of eight-year notes, which priced at par to yield 6¾%, at the tight end of the 6¾% to 7% yield talk.
Global coordinator and joint bookrunner Deutsche Bank will bill and deliver for the dollar-denominated notes.
Global coordinator and joint bookrunner HSBC will bill and deliver for the euro-denominated notes.
Citigroup was also a global coordinator and joint bookrunner.
Commerzbank, JPMorgan and UniCredit were also joint bookrunners.
The issuer, a Herzogenaurach, Germany-based manufacturer of bearings for autos and industrial OEMs, plans to use the proceeds to repay bank debt.
| Issuer: | Schaeffler Holding Finance BV
|
| Amount: | €1.25 billion equivalent
|
| Securities: | Senior secured PIK toggle notes
|
| Global coordinators: | Deutsche Bank, HSBC, Citigroup
|
| Joint bookrunners: | Deutsche Bank, HSBC, Citigroup, Commerzbank, JPMorgan, UniCredit
|
| Trade date: | Oct. 21
|
| Settlement date: | Oct. 28
|
| Ratings: | Moody's: B1
|
| Standard & Poor's: B
|
| Distribution: | Rule 144A and Regulation S
|
| Marketing: | Roadshow
|
|
|
| Five-year notes
|
| Amount: | $475 million
|
| Maturity: | Nov. 15, 2019
|
| Coupon: | 6¼%
|
| Price: | Par
|
| Yield: | 6¼%
|
| Spread: | 482 bps
|
| First call: | Nov. 15, 2016 at 103.125
|
| Equity clawback: | 40% at 106.25 until Nov. 15, 2016
|
| Price talk: | 6¼% to 6½%
|
| Bill and deliver: | Deutsche Bank
|
|
|
| Seven-year notes
|
| Face amount: | €350 million, increased from €300 million
|
| Proceeds: | €345 million
|
| Maturity: | Nov. 15, 2021
|
| Coupon: | 5¾%
|
| Price: | 98.576
|
| Yield: | 6%
|
| Spread: | 651 bps
|
| First call: | Nov. 15, 2017 at 102.875
|
| Equity clawback: | 40% at 105.75 until Nov. 15, 2017
|
| Price talk: | 6% to 6¼%
|
| Bill and deliver: | HSBC
|
|
|
| Eight-year notes
|
| Amount: | $675 million
|
| Maturity: | Nov. 15, 2022
|
| Coupon: | 6¾%
|
| Price: | Par
|
| Yield: | 6¾%
|
| Spread: | 470 bps
|
| First call: | Nov. 15, 2017 at 103.375
|
| Equity clawback: | 40% at 106.75 until Nov. 15, 2017
|
| Price talk: | 6¾% to 7%
|
| Bill and deliver: | Deutsche Bank
|
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