Chicago, Nov. 8 – Paprec Holding SA priced its €600 million offering of senior secured green notes (BB/BB+) on Wednesday, according to market sources.
The first of the equal-sized tranches, due Nov. 17, 2027, priced with a 6½% coupon at par, in line with the 6½% launch and at the tight end of the 6½% to 6 5/8% talk. Initial guidance was in the high-6% to 7% area.
The second €300 million tranche of notes due Nov. 17, 2029 priced with a 7¼% coupon at par, also in line with the 7¼% launch and at the tight end of the 7¼% to 7 3/8% talk. Initial guidance was in the low-to-mid 7% area.
The notes in both the four-year and six-year tranches become subject to initial calls after two years at par plus 50% of the respective coupons, then a stepdown to par plus 25% of the coupon. Before the coupon-based calls, they may be redeemed with a Bunds plus 50 basis points make-whole premium.
Joint active bookrunner Credit Agricole CIB handled billing and delivery. BNP Paribas is also a joint active bookrunner. Natixis was a joint global coordinator. Societe Generale was a joint bookrunner.
The Paris-based waste management company plans to use the proceeds to redeem €575 million of its senior secured notes due 2025 at par, with remaining proceeds to improve liquidity and support growth and financial needs.
| Issuer: | Paprec Holding SA
|
| Amount: | €600 million
|
| Issue: | Green senior secured notes
|
| Bookrunners: | Credit Agricole CIB (billing and delivery), BNP Paribas (global coordinators and active bookrunners), Natixis (joint global coordinator), Societe Generale (joint bookrunner)
|
| Change of control: | At 101
|
| Equity clawback: | Up to 40%
|
| Trade date: | Nov. 8
|
| Settlement date: | Nov. 17
|
| Ratings: | S&P: BB
|
| Fitch: BB+
|
| Distribution: | Rule 144A and Regulation S
|
|
|
| 2027 notes
|
| Amount: | €300 million
|
| Maturity: | Nov. 17, 2027
|
| Coupon: | 6½%
|
| Price: | Par
|
| Yield: | 6½%
|
| Spread: | Bunds plus 388 bps
|
| Call features: | Make-whole call at Bunds plus 50 bps until Nov. 17, 2025; at 103.25 on Nov. 17, 2025, at 101.625 on Nov. 17, 2026; par on May 17, 2027 and thereafter; special redemption of 10% of notes during each year of the non-call period at 103
|
| Price talk: | 6½% to 6 5/8%
|
| ISIN: | XS2712523310, XS2712523740
|
|
|
| 2029 notes
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| Amount: | €300 million
|
| Maturity: | Nov. 17, 2029
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| Coupon: | 7¼%
|
| Price: | Par
|
| Yield: | 7¼%
|
| Spread: | Bunds plus 470 bps
|
| Call features: | Make-whole call at Bunds plus 50 bps until Nov. 17, 2025; at 103.625 on Nov. 17, 2025; at 101.813 on Nov. 17, 2026; at par on Nov. 17, 2027 and thereafter; special redemption of 10% of notes during each year of the non-call period at 103
|
| Price talk: | 7¼% to 7 3/8%
|
| ISIN: | XS2712525109, XS2712525448
|
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