Germany's Schaeffler to sell €1.5 billion equivalent PIK notes Thursday

By Paul A. Harris and Aleesia Forni

Virginia Beach, Va., July 17 - Schaeffler Holding Finance BV is expected to price a €1.5 billion equivalent offering of senior secured PIK toggle notes due 2018 (expected ratings B2/B) in dollars and euros on Thursday, according to a market source.

The tranche sizes are to be determined.

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 Herzogenaurach, Germany-based manufacturer of bearings for automobile and industrial original equipment manufacturers scheduled an investor call for 11 a.m. ET Wednesday.

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