By Paul A. Harris
Portland, Ore., June 30 – Germany-based elevator technology company thyssenkrupp Elevator priced €4.05 billion equivalent of high-yield notes in five tranches on Tuesday, according to market sources.
The deal saw issuer Vertical U.S. Newco Inc. price $1.56 billion of seven-year senior secured notes at par to yield 5¼%.
The yield printed on top of final price talk for a yield of 5¼%, which had been tightened from initial talk in the 5½% area.
Vertical Holdco GmbH priced a $445 million (€400 million equivalent) tranche of eight-year notes at par to yield 7 5/8%.
Pricing also came on top of talk for a yield in the 7 5/8% area, which had been tightened from initial talk for a yield of 7¾% to 8%.
For the euro-denominated notes, Vertical Midco GmbH priced an upsized €1.1 billion seven-year tranche at par to yield 4 3/8%.
The tranche was upsized from €1 billion.
Pricing came on top of talk for a yield of 4 3/8%, which tightened from initial talk for a yield of 4½% to 4¾%.
Vertical Midco also priced a €500 million tranche of seven-year senior secured floating-rate notes at 99.5 with a coupon of Euribor plus 475 basis points.
Pricing came on top of final and initial price talk.
Vertical Midco also priced an eight-year tranche at par to yield 6 5/8%. Pricing came on top of final talk and tight to early talk of a yield of 6¾% to 7%.
Global coordinator Goldman Sachs & Co. LLC will bill and deliver for the dollar-denominated notes.
Global coordinator Barclays will bill and deliver for the euro-denominated unsecured notes.
Global coordinator Credit Suisse will bill and deliver for the euro-denominated secured notes.
Deutsche Bank, RBC and UBS are joint bookrunners.
Proceeds from the Rule 144A and Regulation S for life deal, together with senior term facilities, private senior notes and an equity contribution will be used to fund the buyout of the company by Advent International, Cinven and RAG-Stiftung.
The acquisition of thyssenkrupp, which is based in Essen, Germany, is expected to close by the end of the third quarter of 2020.
| Company: | thyssenkrupp Elevator
|
| Amount: | €4.05 billion
|
| Global coordinators: | Goldman Sachs & Co. LLC (bill and deliver for dollar notes); Barclays (bill and deliver for euro unsecured notes); and Credit Suisse (bill and deliver for euro secured notes)
|
| Joint bookrunners: | Deutsche Bank, RBC and UBS
|
| Trade date: | June 30
|
| Settlement date: | July 15
|
| Secured tranche ratings: | Moody’s: B1
|
| S&P: B+
|
| Fitch: B
|
| Unsecured tranche ratings: Moody’s: Caa1
|
| S&P: CCC+
|
| Fitch: CCC
|
| Distribution: | Rule 144A and Regulation S for life
|
|
|
| Dollar secured notes
|
| Issuer: | Vertical U.S. Newco Inc.
|
| Amount: | $1.56 billion (€1.4 billion equivalent, decreased from €1.5 billion equivalent)
|
| Maturity: | July 15, 2027
|
| Coupon: | 5¼%
|
| Price: | Par
|
| Yield: | 5¼%
|
| Spread: | 476 bps
|
| Call protection: | Three years
|
| Price talk: | 5¼%, revised from 5½% area
|
|
|
| Dollar unsecured notes
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| Issuer: | Vertical Holdco GmbH
|
| Amount: | $445 million (€400 million equivalent)
|
| Maturity: | July 15, 2028
|
| Coupon: | 7 5/8%
|
| Price: | Par
|
| Yield: | 7 5/8%
|
| Spread: | 707 bps
|
| Call protection: | Three years
|
| Price talk: | 7 5/8%, revised from 7¾% to 8%
|
|
|
| Euro secured fixed-rate notes
|
| Issuer: | Vertical Midco GmbH
|
| Amount: | €1.1 billion, increased from €1 billion
|
| Maturity: | July 15, 2027
|
| Coupon: | 4 3/8%
|
| Price: | Par
|
| Yield: | 4 3/8%
|
| Call protection: | Three years
|
| Price talk: | 4 3/8%, revised from 4½% to 4¾%
|
|
|
| Euro secured floaters
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| Issuer: | Vertical Midco GmbH
|
| Amount: | €500 million
|
| Maturity: | July 15, 2027
|
| Coupon: | Euribor plus 475 bps
|
| Euribor floor: | 0%
|
| Price: | 99.5
|
| Call protection: | One year
|
| Price talk: | Euribor plus 475 bps, 0% Euribor floor at 99.5
|
|
|
| Euro unsecured notes
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| Issuer: | Vertical Holdco GmbH
|
| Amount: | €650 million
|
| Maturity: | July 15, 2028
|
| Coupon: | 6 5/8%
|
| Price: | Par
|
| Yield: | 6 5/8%
|
| Spread: | 721 bps
|
| Call protection: | Three years
|
| Price talk: | 6 5/8%, from 6¾% to 7%
|
|
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