Germany's Schaeffler sets price talk for €1.5 billion equivalent secured PIK toggle notes

By Paul A. Harris

Portland, Ore., July 17 - Schaeffler Holding Finance BV set price talk for a €1.5 billion equivalent offering of five-year senior secured PIK toggle notes (B2/B-) on Wednesday, according to a market source.

A dollar-denominated tranche is talked to yield 7% to 7¼%.

A euro-denominated tranche is talked to yield 7¼% to 7½%.

The tranche sizes are expected to split the total amount 50-50.

Order books close Thursday at 9 a.m. ET.

Pricing is set for mid-day New York time on Thursday.

J.P. Morgan Securities LLC will bill and deliver for the dollar tranche and is a joint bookrunner, while Deutsche Bank Securities Inc. will bill and deliver for the euro tranche and is also a joint bookrunner.

BNP Paribas Securities Corp., Citigroup Global Markets Inc., Commerzbank, HSBC Securities and UniCredit are additional joint bookrunners.

The Rule 144A and Regulation S for life notes will be callable in one year at par plus 75% of the coupon.

Proceeds will be used to refinance existing HoldCo debt.

The issuer is a Herzogenaurach, Germany-based manufacturer of bearings for the automobile and industrial equipment sectors.

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