By William Gullotti and Cristal Cody
Buffalo, N.Y., April 19 – LG Electronics Inc. priced a dual-tranche debut offering of 5 5/8% notes totaling $800 million (Baa2/BBB) on Thursday that included a sustainability-linked tranche, according to information provided by a market source.
The final cumulative order books for LG’s blowout debut totaled $7.3 billion.
The first tranche, maturing in 2027, totals $500 million and priced at Treasuries plus 95 basis points. Initial price talk was in the Treasuries plus 135 bps area.
The sustainability-linked second tranche, totaling $300 million and maturing in 2029, priced at 110 bps over Treasuries. Initial price talk was in the Treasuries plus 150 bps area.
BNP Paribas, Citigroup, HSBC, JPMorgan, Korea Development Bank and Standard Chartered Bank are the bookrunners.
According to Moody’s Investors Service, proceeds will be used for general operations, with the sustainability-linked tranche used to finance or refinance eligible projects following LG’s sustainable finance framework.
LG Electronics is a multinational electronics company based in Seoul, South Korea.
| Issuer: | LG Electronics Inc.
|
| Amount: | $800 million
|
| Issue: | Notes
|
| Bookrunners: | BNP Paribas, Citigroup, HSBC, JPMorgan, Korea Development Bank and Standard Chartered Bank
|
| Trade date: | April 18
|
| Ratings: | Moody’s: Baa1
|
| S&P: BBB+
|
|
|
| 2027 notes
|
| Amount: | $500 million
|
| Issue: | Senior notes
|
| Maturity: | April 24, 2027
|
| Coupon: | 5 5/8%
|
| Spread: | Treasuries plus 95 bps
|
| Price talk: | Treasuries plus 135 bps area
|
|
|
| 2029 notes
|
| Amount: | $300 million
|
| Issue: | Senior sustainability notes
|
| Maturity: | April 24, 2029
|
| Coupon: | 5 5/8%
|
| Spread: | Treasuries plus 110 bps
|
| Price talk: | Treasuries plus 150 bps
|
|
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