Schaeffler says it has successfully placed EUR2bn (US$2.6bn) of bonds in the international capital markets, with the issue oversubscribed by around five times.
Given what the supplier refers to as “extraordinary demand,” the originally-envisaged issue size of EUR1bn was increased to EUR2bn.
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The issue consists of two Euro tranches and two US dollar tranches. The two Euro tranches have a total volume of EUR1.2bn with a maturity of five and seven years and coupons of 7.75% and 8.75%, respectively.
The two dollar tranches total US$1.1bn. The five-year and the seven-year US dollar tranches come at coupons of 7.75% and 8.5%, respectively.
Then bond issue represents a key element of the EUR8bn refinancing agreement Schaeffler entered into with its banks last week (27 January). The issue, which is a first major part of the new refinancing concept, was implemented faster than anticipated. The net proceeds of the bonds will be used to repay existing loans.
“The demand for the bonds was extraordinary both in Europe and the US,” said Schaeffler CFO Klaus Rosenfeld. “With the highly successful placement we have laid the foundation for a further optimisation of our capital structure.”
The notes have been issued by Schaeffler Finance and are guaranteed by Schaeffler and selected subsidiaries.
The bonds will be listed on the Euro MTF market of the Luxembourg Stock Exchange. The company mandated BNP Paribas, Deutsche Bank, HSBC and JP Morgan as joint global coordinators and joint managing bookrunners.
Commerzbank, LBBW, Royal Bank of Scotland and UniCredit acted as joint lead bookrunners.
