By Paul A. Harris
Portland, Ore., Feb. 27 - Kerneos Tech Group SAS priced an upsized €350 million two-part offering of seven-year senior secured notes (B2/B+/) on Thursday, according to market sources.
A €200 million tranche of fixed-rate notes priced at par to yield 5¾%, at the tight end of the 5¾% to 6% price talk.
A €150 million tranche of floating-rate notes priced at par to yield Euribor plus 475 basis points. The reoffer price of the floating-rate notes came on top of price talk. The Euribor spread came at the tight end of the 475 bps to 500 bps spread talk.
The overall size of the transaction was increased from €335 million.
Goldman Sachs International was the bookrunner.
Proceeds will be used to finance the acquisition of Kerneos by Astorg Partners. The additional €15 million of proceeds, resulting from the upsizing of the deal, will be used to reduce Astorg's equity contribution to €195.5 million from €210.5 million.
Kerneos is a Paris-based manufacturer and supplier of calcium aluminate cements.
| Issuer: | Kerneos Tech Group SAS
|
| Amount: | €350 million, increased from €335 million
|
| Maturity: | March 1, 2021
|
| Securities: | Senior secured notes
|
| Bookrunner: | Goldman Sachs International
|
| Co-manager: | Mizuho Securities
|
| Trade date: | Feb. 27
|
| Settlement date: | March 13
|
| Ratings: | Moody's: B2
|
| Standard & Poor's: B+
|
| Distribution: | Rule 144A and Regulation S
|
| Marketing: | Roadshow
|
|
|
| Fixed-rate notes
|
| Amount: | €200 million
|
| Coupon: | 5¾%
|
| Price: | Par
|
| Yield: | 5¾%
|
| Spread: | 482 bps
|
| Call features: | Callable March 1, 2017 at 102.875, 101.438, par on and after March 1, 2019
|
| Price talk: | 5¾% to 6%
|
|
|
| Floating-rate notes
|
| Amount: | €150 million
|
| Coupon: | Euribor plus 475 bps
|
| Price: | Par
|
| Yield: | Euribor plus 475 bps
|
| Call features: | Callable March 1, 2015 at 101, par on and after March 1, 2016
|
| Price talk: | Euribor plus 475 to 500 bps
|
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