Published on 10/1/2010 in the Prospect News High Yield Daily.
New Issue: Germany's Hapag-Lloyd sells €330 million and $250 million senior notes
By Paul A. Harris
St. Louis, Oct. 1 - Hapag-Lloyd AG priced €330 million and $250 million of senior notes (B3/B/) in two tranches with separate maturities on Friday, according to an informed source.
The Hamburg, Germany-based container shipping firm priced an upsized €330 million tranche of 9% five-year notes at 99.5015 to yield 9 1/8%.
The tranche was upsized from an expected range of €250 million to €300 million and priced at the tight end of the 9¼% area price talk.
Hapag-Lloyd also priced a $250 million tranche of 9¾% seven-year notes at 99.3731 to yield 9 7/8%.
The yield on the seven-year notes printed in the middle of the 9¾% to 10% price talk. The tranche was sized at the low end of the expected $250 million to $300 million range.
Deutsche Bank, Citigroup, Credit Suisse, Goldman Sachs, JPMorgan and UniCredit were the joint bookrunners.
Proceeds will be used to repay debt.
| Issuer: | Hapag-Lloyd AG
|
| Securities: | Senior notes
|
| Bookrunners: | Deutsche Bank (Bill and deliver), Citigroup, Credit Suisse, Goldman Sachs, JPMorgan, UniCredit
|
| Trade date: | Oct. 1
|
| Settlement date: | Oct. 8
|
| Ratings: | Moody's: B3
|
| Standard & Poor's: B
|
| Distribution: | Rule 144A and Regulation S with registration rights
|
| Marketing: | Roadshow
|
|
|
| Euro-denominated notes
|
| Face amount | €330 million (upsized from €250 million to €300 million range)
|
| Proceeds: | €328,355,000 (approximate)
|
| Maturity: | Oct. 15, 2015
|
| Coupon: | 9%
|
| Price: | 99.5015
|
| Yield: | 9 1/8%
|
| Spread: | 762 bps
|
| Call features: | Callable on Oct. 15, 2013 at 104.50, 102.25, par on and after Oct. 15, 2015
|
| Equity clawback: | 35% at 109.0 until Oct. 15, 2013
|
| Price talk: | 9¼% area
|
|
|
| Dollar-denominated notes
|
| Face amount: | $250 million
|
| Proceeds: | $248,433,000 (approximate)
|
| Maturity: | Oct. 15, 2017
|
| Coupon: | 9¾%
|
| Price: | 99.3731
|
| Yield: | 9 7/8%
|
| Spread: | 798 bps
|
| Call features: | Callable on Oct. 15, 2014 at 104.875, 102.438, par on and after Oct. 15, 2016
|
| Equity clawback: | 35% at 109.75 until Oct. 15, 2013
|
| Price talk: | 9¾% to 10%
|
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