By Paul A. Harris
Portland, Ore., July 14 – Italy’s Sisal Group SpA priced €725 million of senior secured notes (B1/B+) in two tranches on Thursday, according to a market source.
The Milan-based gaming company priced €400 million of seven-year fixed-rate notes at par to yield 7%. The yield printed 25 basis points beneath the tight end of the 7¼% to 7½% yield talk.
In addition Sisal priced €325 million of three-month Euribor plus 662.5 basis points six-year floating-rate notes at 99. The spread came at the tight end of spread talk in the 675 bps area. The reoffer price came on top of price talk.
Global coordinator Morgan Stanley will bill and deliver. Credit Suisse and UniCredit are also global coordinators.
BNP Paribas, Deutsche Bank and UBS are joint bookrunners.
Proceeds, together with cash on hand and an equity contribution from CVC Capital Partners, will be used to help fund the acquisition of Sisal by CVC, to pay off Sisal’s existing debt, including the senior secured notes due in 2017, and for general corporate purposes.
The issuing entity is Schumann SpA, a special purpose vehicle created to help consummate the acquisition.
| Issuer: | Schumann SpA
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| Amount: | €725 million
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| Securities: | Senior secured notes
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| Global coordinators: | Morgan Stanley (bill and deliver), Credit Suisse, UniCredit
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| Joint bookrunners: | BNP Paribas, Deutsche Bank, UBS
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| Trade date: | July 14
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| Settlement date: | July 28
|
| Ratings: | Moody's: B1
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| S&P: B+
|
| Distribution: | Rule 144A and Regulation S
|
| Marketing: | Roadshow
|
|
|
| Fixed-rate notes
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| Amount: | €400 million
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| Maturity: | July 31, 2023
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| Coupon: | 7%
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| Price: | Par
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| Yield: | 7%
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| Spread: | 740 bps
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| First call: | July 31, 2019 at 103.5
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| Price talk: | 7¼% to 7½%
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|
|
| Floating-rate notes
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| Amount: | €325 million
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| Maturity: | July 31, 2022
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| Coupon: | Three-month Euribor plus 662.5 bps
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| Price: | 99
|
| First call: | July 31, 2017 at 101
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| Price talk: | Euribor plus 675 bps at 99
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