Germany's Hapag-Lloyd talks $500 million equivalent five-year senior notes with 9¼% area yield

By Paul A. Harris

St. Louis, Sept. 29 - German container shipping firm Hapag-Lloyd AG talked its $500 million equivalent offering of five-year senior notes (B3/B/) with a 9¼% area yield, a market source said on Wednesday.

The notes, which will be issued in dollar and euro denominations, are expected to price on Friday.

The notes come with three years of call protection.

Deutsche Bank, Citigroup, Credit Suisse, Goldman Sachs, JPMorgan and UniCredit are managing the Rule 144A and Regulation S transaction.

When it was announced, the deal was expected to also include dollar- and euro-denominated tranches of seven-year notes, with four years of call protection. However, there was no further news on a possible seven-year tranche, the market source said.

Proceeds will be used to repay debt.

The Hamburg, Germany-based firm is a unit of TUI AG.

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