New Issue: Spain's Gestamp sells €770 million equivalent seven-year secured notes in two parts

By Paul A. Harris

Portland, Ore., May 2 - Spanish engineering firm Gestamp Automacion SL priced a slightly upsized €770 million equivalent amount of seven-year senior secured notes (B1/BB) in two tranches on Thursday, according to a market source.

The deal, which was upsized from €750 million equivalent, included a $350 million tranche of notes, which priced at par to yield 5 5/8%, at the tight end of price talk set in the 5¾% area, and a €500 million tranche of notes, which priced at par to yield 5 7/8%, at the tight end of price talk set in the 6% area.

Joint bookrunner Deutsche Bank will bill and deliver. BofA Merrill Lynch, Bankia, Barclays, BBVA, Caxia, Commerzbank, Itau, Santander and SG CIB were also joint bookrunners.

The Abadino, Spain-based company plans to use the proceeds to refinance debt.

Issuer:	Gestamp Funding Luxembourg SA (Gestamp Automacion SL)
Amount:	€770 million equivalent, upsized from €750 million equivalent
Maturity:	May 31, 2020
Securities:	Senior secured notes
Bookrunners:	Deutsche Bank (bill and deliver), BofA Merrill Lynch, Bankia, Barclays, BBVA, Caxia, Commerzbank, Itau, Santander, SG CIB
Co-manager:	Sabadell
Call protection:	Three years
Trade date:	May 2
Ratings:	Moody's: B1
	Standard & Poor's: BB
Distribution:	Rule 144A and Regulation S
Marketing:	Roadshow
Dollar-denominated notes
Amount:	$350 million
Coupon:	5 5/8%
Price:	Par
Yield:	5 5/8%
Spread:	455 bps
Price talk:	5¾% area
Euro-denominated notes
Amount:	€500 million
Coupon:	5 7/8%
Price:	Par
Yield:	5 7/8%
Spread:	521 bps
Price talk:	6% area

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