Chicago, Nov. 30 – Electricite de France SA priced €1 billion of deeply subordinated hybrid bonds (Ba1/B+/BBB-) on Wednesday at par, according to a market source.
The initial 7½% interest rate resets for the first time on Dec. 6, 2028. Starting on that date and on five-year anniversaries, the rate will reset to the five-year mid-swap rate plus 486 basis points. There is also a 25 bps step-up on Dec. 6, 2033 and then a 75 bps step-up on Dec. 6, 2048.
The perpetual notes come with six years of call protection. They have a par call during the three months before the first reset and then on any interest payment date thereafter. Before that time, there is a make-whole redemption premium of Bunds plus 50 bps.
Final books were at €5.6 billion. Initial price talk was in the 8¼% area.
Barclays, BNP Paribas, Credit Agricole CIB and Santander are the joint bookrunners.
Proceeds will be used for general corporate purposes, including the refinancing of the $3 billion reset perpetual subordinated notes. There are $2,097,614,000 outstanding.
EDF is a Paris-based electric utility company.
Issuer: | Electricite de France SA
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Amount: | €1 billion
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Issue: | Hybrid bonds
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Maturity: | Perpetual
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Bookrunners: | Barclays, BNP Paribas, Credit Agricole CIB and Santander
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Coupon: | 7½% initial rate; resets on five-year anniversaries starting Dec. 6, 2028 at mid-swaps plus 486 bps; 25 bps step-up on Dec. 6, 2033; 75 bps step-up on Dec. 6, 2048
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Price: | Par
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Yield: | 7½%
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Spread: | Bunds plus 561.5 bps
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Call features: | First call date on Sept. 6, 2028
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Trade date: | Nov. 30
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Settlement date: | Dec. 6
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Ratings: | Moody’s: Ba1
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| S&P: B+
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| Fitch: BBB-
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Distribution: | Regulation S
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Price talk: | 8¼% area
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ISIN: | FR001400EFQ6
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