By Mary-Katherine Stinson and Cristal Cody
Lexington, Ky., Jan. 18 – SK Hynix Inc. sold $2.5 billion of notes in three tranches (Baa2/BBB-), including sustainability-linked bonds and green bonds, according to listing notices and additional information from a market source.
The $750 million tranche of conventional bonds priced with a 6¼% coupon and a three-year tenor. The notes priced at Treasuries plus 240 basis points, down from talk in the 280 bps area.
The $1 billion 6 3/8% sustainability-linked notes due 2028 priced with a 275 bps spread to Treasuries after initial talk in the 315 bps area.
A third tranche for $750 million of 6½% green notes due 2033 priced at Treasuries plus 310 bps. Initial talk was in the 360 bps area.
The Rule 144A and Regulation S notes list BofA, BNP Paribas, Citigroup, Credit Agricole CIB, HSBC, MUFG and Standard Chartered Bank as bookrunners.
As previously reported, the sustainability-linked bonds’ interest rates can vary depending on whether the issuer achieves predefined environmental, social and governance management objectives. Specifically, SK Hynix aims to reduce scope 1 and 2 greenhouse gas emissions intensity by 57% compared to the company's 2020 baseline by 2026.
Proceeds will be used for general corporate purposes, according to Moody’s Investors Service.
The green bonds’ proceeds may be used only to fund environmentally friendly projects.
Icheon, South Korea-based SK Hynix is a memory semiconductor supplier of dynamic random-access memory chips and flash memory chips.
| Issuer: | SK Hynix Inc
|
| Amount: | $2.5 billion
|
| Bookrunners: | BofA, BNP Paribas, Citigroup, Credit Agricole CIB, HSBC, MUFG and Standard Chartered Bank
|
| Trade date: | Jan. 10
|
| Settlement date: | Jan. 17
|
| Ratings: | Moody’s: Baa2
|
| S&P: BBB-
|
| Distribution: | Rule 144A and Regulation S
|
|
|
| 2026 notes
|
| Amount: | $750 million
|
| Issue: | Notes
|
| Maturity: | Jan. 17, 2026
|
| Coupon: | 6¼%
|
| Spread: | Treasuries plus 240 bps
|
| Price talk: | Treasuries plus 280 bps area
|
| ISINs: | US78392BAD91, USY8085FBJ85
|
|
|
| 2028 notes
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| Amount: | $1 billion
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| Issue: | Sustainability-linked notes
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| Maturity: | Jan. 17, 2028
|
| Coupon: | 6 3/8%
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| Spread: | Treasuries plus 275 bps
|
| Price talk: | Treasuries plus 315 bps area
|
| ISINs: | US78392BAE74, USY8085FBK58
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|
|
| 2033 notes
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| Amount: | $750 million
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| Issue: | Green notes
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| Maturity: | Jan. 17, 2033
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| Coupon: | 6½%
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| Spread: | Treasuries plus 310 bps
|
| Price talk: | Treasuries plus 360 bps area
|
| ISINs: | US78392BAF40, USY8085FBL32
|
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