By Rebecca Melvin
Concord, N.H., July 9 – Nemak SAB de CV priced €500 million 2¼% seven-year sustainability-linked bonds (Ba1/BB+/BBB-) at par on Thursday, according to a market source.
Pricing was set below guidance for yield in the 2 3/8% area and initial talk for a yield in the 2½% area.
The notes have a make-whole call at the applicable comparable government bond rate plus 40 basis points and a par call on or after April 29, 2028.
There is a change-of-control put at 101% of par plus interest.
A listing on the Irish Stock Exchange, trading as Euronext Dublin is expected.
Banco Bilbao Vizcaya Argentaria SA, BNP Paribas and HSBC Bank plc were joint lead bookrunning mangers and joint sustainability-linked bond structuring agents for the Rule 144A and Regulation S issue.
Passive bookrunners were Merrill Lynch International, Citigroup Global Markets Ltd., J.P. Morgan Securities plc and Banco Santander SA.
The proceeds are expected to be used to pay in whole or in part the consideration for the company’s tender offer and consent solicitation for its 2024 notes with the remainder if any for debt repayment and other general corporate purposes.
The company placed $500 million in its inaugural sustainability-linked issue in June.
Nemak is a global automotive parts manufacturing company based in Garcia, Greater Monterrey, Mexico.
| Issuer: | Nemak SAB de CV
|
| Issue: | Sustainability-linked bonds
|
| Amount: | $500 million
|
| Maturity: | July 28, 2028
|
| Bookrunners: | Banco Bilbao Vizcaya Argentaria SA, BNP Paribas, HSBC Bank plc, Merrill Lynch International, Citigroup Global Markets Ltd., J.P. Morgan Securities plc and Banco Santander SA
|
| Coupon: | 2¼%
|
| Price: | Par
|
| Yield: | 2¼%
|
| Call features: | Make-whole call and three-month par call
|
| Make-whole premium: | 40 bps
|
| Puts: | Change of control, at 101%
|
| Trade date: | July 7
|
| Settlement date: | July 20
|
| Ratings: | Moody’s: Ba1
|
| S&P: BB+
|
| Fitch: BBB-
|
| Distribution: | Rule 144A and Regulation S
|
| Price talk: | Guided to 2 3/8% area from initial price talk of 2½% area
|
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