By Paul A. Harris
Portland, Ore., July 5 – Hapag-Lloyd AG priced an upsized €450 million issue of seven-year senior notes (expected ratings Caa1/B-) at par to yield 5 1/8% on Tuesday, according a market source.
The amount was increased from €300 million.
The yield printed at the tight end of yield talk that set in the 5¼% area.
Global coordinator Deutsche Bank will bill and deliver. Berenberg and Credit Suisse were also global coordinators.
Credit Agricole CIB, HSH Nordbank and MM Warburg & Co. are the joint bookrunners.
The notes will come with three of call protection.
The Hamburg, Germany-based container ship company plans to use the proceeds, including the additional proceeds resulting from the upsizing of the issue, to fund the early redemption of its euro-denominated notes due 2018 and euro-denominated notes due 2019.
| Issuer: | Hapag-Lloyd AG
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| Amount: | €450 million, increased from €300 million
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| Maturity: | July 15, 2024
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| Securities: | Senior notes
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| Global coordinators: | Deutsche Bank (bill and deliver), Berenberg, Credit Suisse
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| Joint bookrunners: | Credit Agricole CIB, HSH Nordbank and MM Warburg & Co.
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| Coupon: | 5 1/8%
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| Price: | Par
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| Yield: | 5 1/8%
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| Spread: | 505 bps
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| Call protection: | Three years
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| Trade date: | July 4
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| Expected ratings: | Moody’s: Caa1
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| S&P: B-
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| Distribution: | Rule 144A and Regulation S for life
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| Price talk: | 5¼% area
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| Marketing: | Roadshow
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