By Paul A. Harris
St. Louis, Oct. 14 - HeidelbergCement AG sold an upsized and restructured €2.5 billion three-part offering of senior unsecured notes on Wednesday, according to market sources.
The Heidelberg, Germany-based cement and building materials company priced €1 billion of 7½% five-year notes at 98.465 to yield 7 7/8%, tight to the 8% price talk.
The company also priced €1 billion of 8% seven-year notes at 97.349 to yield 8½%, on top of price talk.
In addition HeidelbergCement priced €500 million of 8½% 10-year notes at 96.739 to yield 9%, 12.5 basis points through the 9¼% price talk.
Deutsche Bank and Royal Bank of Scotland are global coordinators and, along with Bank of America Merrill Lynch and Commerzbank, are joint bookrunners.
Hanson Ltd. is the guarantor of the notes, which are to be issued via Regulation S only.
The notes will be non-callable and will feature a make-whole provision.
Proceeds will be used to refinance bank debt.
The deal was upsized and restructured from the original €1 billion two-part offering. The 10-year tranche was added during the time that the deal was being marketed.
| Issuer: | HeidelbergCement AG
|
| Guarantor: | Hanson Ltd.
|
| Face amount: | €2.5 billion
|
| Proceeds: | €2.442 billion (approximate)
|
| Securities: | Senior unsecured notes
|
| Global coordinators: | Deutsche Bank, Royal Bank of Scotland
|
| Bookrunners: | Deutsche Bank, Royal Bank of Scotland, Bank of America Merrill Lynch, Commerzbank
|
| Call protection: | Non-callable, with a make-whole provision
|
| Distribution: | Regulation S
|
| Trade date: | Oct. 14
|
|
|
| Five-year notes
|
| Face amount: | €1 billion
|
| Proceeds: | €984.65 million
|
| Maturity: | Oct. 31, 2014
|
| Coupon: | 7½%
|
| Price: | 98.465
|
| Yield: | 7 7/8%
|
| Spread: | 550 bps
|
| Price talk: | 8%
|
|
|
| Seven-year notes
|
| Face amount: | €1 billion
|
| Proceeds: | €973.49 million
|
| Maturity: | Oct. 31, 2016
|
| Coupon: | 8%
|
| Price: | 97.349
|
| Yield: | 8½%
|
| Spread: | 565 bps
|
| Price talk: | 8½%
|
|
|
| 10-year notes
|
| Face amount: | €500 million
|
| Proceeds: | €483.695
|
| Maturity: | Oct. 31, 2019
|
| Coupon: | 8½%
|
| Price: | 96.739
|
| Yield: | 9%
|
| Spread: | 580 bps
|
| Price talk: | 9¼%
|
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