Chicago, Jan. 24 – Red Electrica Corp. SA priced €500 million of 4.625% perpetual green hybrid securities (BBB) on Tuesday, a market source noted.
The deeply subordinated securities priced at 99.67 to yield 4.7%, or at mid-swaps plus 188.4 basis points.
Initial price talk was in the 5.375% area for the yield.
The first reset date is Aug. 7, 2028. Starting on the reset date, the rate resets to five-year mid-swaps plus the initial credit spread with relevant step-ups when applicable. There is a 25 bps step-up on Aug. 7, 2033 and a further 75 bps step-up on Aug. 7, 2048.
The securities are callable with a make-whole premium of Bunds plus 40 bps. There is a par call option during the three months before the first reset date and then on any interest payment date thereafter.
BNP Paribas (billing and delivery) and Citi are the joint global coordinators and structuring agents.
Joining as joint active bookrunners are Barclays, BBVA, CaixaBank, ING, Mediobanca and Santander.
Final books went above €4.25 billion.
The perpetual Regulation S securities will be used to finance or refinance projects that meet the company’s green framework.
The company owns and operates Spain’s electric transmission assets.
| Issuer: | Red Electrica Corp. SA
|
| Amount: | €500 million
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| Issue: | Deeply subordinated green hybrid securities
|
| Maturity: | Perpetual
|
| Bookrunners: | BNP Paribas (billing and delivery), Citi, Barclays, BBVA, CaixaBank, ING, Mediobanca and Santander
|
| Coupon: | 4.625% initial rate, resets to five-year mid-swaps plus initial credit spread and step-ups; 25 bps step-up on Aug. 7, 2033; additional 75 bps step-up on Aug. 7, 2048
|
| Price: | 99.67
|
| Yield: | 4.7%
|
| Spread: | Mid-swaps plus 188.4 bps
|
| Call features: | Make-whole call at Bunds plus 40 bps; par call three months before reset date then on any interest payment date thereafter
|
| Trade date: | Jan. 24
|
| Settlement date: | Feb. 7
|
| Rating: | S&P: BBB
|
| Distribution: | Regulation S
|
| Price talk: | 5.375% area yield
|
| Marketing: | Investor meetings
|
| ISIN: | XS2552369469
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