By Paul A. Harris
Portland, Ore., Feb. 6 - Germany's KION Group GmbH priced an upsized €650 million of seven-year senior secured notes (B2/B/) in two tranches on Wednesday, according to market sources.
The deal included an upsized €450 million tranche of fixed-rate notes, which priced at par to yield 6¾%.
The tranche was upsized from €350 million. The yield printed on top of yield talk.
KION also added a €200 million tranche of floating-rate notes to the transaction. Those notes priced at 99.5 and will pay a coupon of three-month Euribor plus 450 basis points.
Global bookrunner BofA Merrill Lynch will bill and deliver. Deutsche Bank was also a global bookrunner.
BNP Paribas, Commerzbank, Goldman Sachs, KKR and UniCredit were the joint bookrunners.
Proceeds will be used to refinance existing first-lien debt.
KION is a Wiesbaden, Germany-based provider of industrial and warehouse equipment and other material handling equipment.
| Issuer: | Kion Finance SA (KION Group GmbH)
|
| Amount: | €650 million, upsized from €350 million
|
| Maturity: | Feb. 15, 2020
|
| Securities: | Senior secured notes
|
| Global bookrunners: | BofA Merrill Lynch (bill and deliver), Deutsche Bank
|
| Joint bookrunners: | BNP Paribas, Commerzbank, Goldman Sachs, KKR, UniCredit
|
| Co-managers: | IKB, Mizuho, Nomura, Rabobank, SG CIB
|
| Trade date: | Feb. 6
|
| Settlement date: | Feb. 14
|
| Ratings: | Moody's: B2
|
| Standard & Poor's: B
|
| Distribution: | Rule 144A and Regulation S for life
|
| Marketing: | Roadshow
|
|
|
| Fixed-rate notes
|
| Amount: | €450 million, increased from €350 million
|
| Coupon: | 6¾%
|
| Price: | Par
|
| Yield: | 6¾%
|
| Spread: | 562 bps
|
| Call protection: | Three years
|
| Price talk: | 6¾% area
|
|
|
| Floating-rate notes
|
| Face amount: | €200 million
|
| Proceeds: | €199 million
|
| Coupon: | Three-month Euribor plus 450 bps
|
| Price: | 99.5
|
| Call protection: | One year
|
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