New Issue: Gestamp prices upsized €500 million seven-year secured notes at par to yield 3½%

By Paul A. Harris

Portland, Ore., May 4 – Gestamp Funding Luxembourg SA priced an upsized €500 million issue of seven-year senior secured notes (Ba3/BB+) at par to yield 3½% on Wednesday, according to a market source.

The issue size was increased from €400 million.

The yield printed at the tight end of the 3½% to 3¾% yield talk.

Timing on the deal was accelerated, as it had been expected to be in the market through Thursday.

Joint bookrunner Deutsche Bank will bill and deliver. CaixaBank, BBVA, Bankia, BNP Paribas, BofA Merrill Lynch, Santander and SG CIB were also joint bookrunners.

The Abadino, Spain-based manufacturer of automotive components and structural systems plans to use the proceeds to redeem or repurchase its 5 7/8% senior secured notes due 2020.

Issuer:	Gestamp Funding Luxembourg SA
Amount:	€500 million, increased from €400 million
Maturity:	May 15, 2023
Securities:	Senior secured notes
Bookrunners:	Deutsche Bank (bill and deliver), CaixaBank, BBVA, Bankia, BNP Paribas, BofA Merrill Lynch, Santander, SG CIB
Co-managers:	Banco Popular, Banco Sabadell, Commerzbank
Coupon:	3½%
Price:	Par
Yield:	3½%
Spread:	366 bps
Call protection:	Three years
Trade date:	May 4
Settlement date:	May 11
Ratings:	Moody's: Ba3
	S&P: BB+
Distribution:	Rule 144A and Regulation S
Price talk:	3½% to 3¾%
Marketing:	Roadshow

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