By Paul A. Harris
Portland, Ore., April 20 – ZF Friedrichshafen AG priced €2.25 billion of non-callable senior notes (Ba2/BB) in two tranches on Monday, according to a market source.
The deal included €1.15 billion of 2¼% four-year notes that priced at 99.529 to yield 2 3/8%. The yield printed at the tight end of yield talk in the 2½% area.
The company also price €1.1 billion of 2¾% eight-year notes at 99.118 to yield 2 7/8%. The yield printed at the tight end of yield talk in the 3% area.
Barclays, BNP Paribas, Commerzbank and Deutsche Bank managed the sale.
Proceeds will be used to help fund the merger with Livonia, Mich.-based supplier of automotive systems, modules and components TRW Automotive Holdings Corp.
The issuer is a Friedrichshafen, Baden-Wuerttemberg, Germany-based auto parts manufacturer.
| Issuer: | ZF North America Capital (ZF Friedrichshafen AG)
|
| Amount: | €2.25 billion
|
| Securities: | Senior notes
|
| Managers: | Barclays, BNP Paribas, Commerzbank, Deutsche Bank
|
| Trade date: | April 20
|
| Settlement date: | April 27
|
| Ratings: | Moody's: Ba2
|
| Standard & Poor's: BB
|
|
|
| Four-year notes
|
| Amount: | €1.15 billion
|
| Maturity: | April 26, 2019
|
| Coupon: | 2¼%
|
| Price: | 99.529
|
| Yield: | 2 3/8%
|
| Spread: | 257 bps
|
| Call protection: | Non-callable
|
| Price talk: | 2½% area
|
|
|
| Eight-year notes
|
| Amount: | €1.1 billion
|
| Maturity: | April 26, 2023
|
| Coupon: | 2¾%
|
| Price: | 99.118
|
| Yield: | 2 7/8%
|
| Spread: | 292 bps
|
| Call protection: | Non-callable
|
| Price talk: | 3% area
|
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