By Paul A. Harris
St. Louis, March 11 - Stena AB priced an upsized €200 million issue of 7 7/8% 10-year senior notes (/BB+/) at 98.3113 to yield 8 1/8% on Thursday, according to an informed source.
Informal price talk had been in the 8% area.
Deutsche Bank Securities and JPMorgan were joint bookrunners for the issue, which was upsized from €150 million.
Proceeds will be used to repurchase Stena's outstanding senior notes due 2013, either through the open market or via a cash tender, and for general corporate purposes.
Stena, a Gothenburg, Sweden-based company, has operations in shipping and offshore oil and gas exploration.
| Issuer: | Stena AB
|
| Face amount: | €200 million, increased from €150 million
|
| Proceeds: | €196,623,000 (approximate)
|
| Maturity: | March 15, 2020
|
| Securities: | Senior notes
|
| Bookrunners: | Deutsche Bank Securities, JPMorgan
|
| Coupon: | 7 7/8%
|
| Price: | 98.3113
|
| Yield: | 8 1/8%
|
| Spread: | 497 bps over Bunds
|
| Call option: | Non-callable
|
| Trade date: | March 11
|
| Settlement date: | March 16
|
| Rating: | Standard & Poor's: BB+
|
| Distribution: | Rule 144A/Regulation S for life
|
| Informal price talk: | 8% area
|
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