By Rebecca Melvin
Concord, N.H., July 27 – Valeo priced €700 million of 1% seven-year sustainability-linked bonds (Baa3/BB+) at 99.939 to yield 1.009%, or a spread of 125 basis points over mid-swaps, according to a market source on Tuesday.
Pricing of the senior notes came below yield guidance in the mid-swaps plus 135 bps area and initial price talk in the mid-swaps plus 155 bps area.
BNP Paribas and Credit Agricole CIB were global coordinators of the Regulation S deal, and they were also active bookrunners together with CIC, Mizuho, Natixis and Societe Generale.
The notes have a make-whole call premium of Bunds plus 25 bps, and a three-month par call as well as a change-of-control put and clean-up call.
A sustainability step-up of 37.5 bps applies from the next interest period following Dec. 31, 2025 and each further interest period up to the maturity (for up to 75 bps of additional yield) if Valeo fails to achieve its reduced carbon footprint sustainability targets.
The automotive supplier is based in Paris.
Issuer: | Valeo
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Issue: | Sustainability-linked bonds
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Amount: | €700 million
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Maturity: | Aug. 3, 2028
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Bookrunners: | BNP Paribas, Credit Agricole CIB, CIC, Mizuho, Natixis and Societe Generale
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Coupon: | 1%
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Price: | 99.939
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Yield: | 1.009%
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Spread: | Mid-swaps plus 125 bps
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Call features: | Make-whole premium of Bunds plus 25 bps and three-month par call
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Puts: | Upon change of control
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Step-up margin: | 37.5 bps applied from the interest period following Dec. 31, 2025 and each further interest period for up to 75 bps
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Observation date: | Dec. 31, 2025
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Pricing date: | July 27
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Settlement date: | Aug. 3
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Ratings: | Moody’s: Baa3
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| S&P: BB+
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Distribution: | Regulation S
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Price talk: | Guided to mid-swaps plus 135 bps from initial price talk of mid-swaps plus 155 bps
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