By Paul A. Harris
Portland, Ore., Sept. 19 – Outokumpu Oyj priced a €250 million issue of non-rated five-year senior secured bonds at par to yield 6 5/8%, according to a market source.
The yield printed 25 basis points beneath the low end of initial yield talk that had been set in the 7% area.
The coupon steps up by 100 bps if the bonds are not rated within 18 months.
Nordea Markets and Pohjola Markets were the coordinators and lead managers. Danske Bank A/S, Skandinaviska Enskilda Banken AB and Swedbank AB were also lead managers.
Proceeds will be used to refinance debt, including the redemption of the company’s bonds maturing in June 2015.
On or around the issue date of the new bond, Outokumpu will cancel its existing and currently undrawn €500 million liquidity facility by an amount equal to the proceeds from the new bond.
Outokumpu Oyj is an Espoo, Finland-based stainless steel manufacturer.
| Issuer: | Outokumpu Oyj
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| Amount: | €250 million
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| Maturity: | Sept. 30, 2019
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| Securities: | Senior secured bonds
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| Coordinators and lead managers: | Nordea Markets, Pohjola Markets
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| Other lead managers: | Danske Bank A/S, Skandinaviska Enskilda Banken AB, Swedbank AB
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| Coupon: | 6 5/8% (100 bps step-up if bonds are not rated within 18 months)
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| Price: | Par
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| Yield: | 6 5/8%
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| Call protection: | 2.5 years
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| Settlement date: | Sept. 30
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| Ratings: | Non-rated
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| Initial price talk: | 7% area
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