By Paul A. Harris
Portland, Ore., April 4 – ZF North America Capital Inc., a subsidiary of Germany-based automotive technology components supplier ZF Friedrichshafen AG, priced $1.2 billion of senior secured green bullet notes (Ba1/BB+) in two tranches on Tuesday, according to market sources.
The deal included $600 million of 6 7/8% five-year notes that priced at 99.688 to yield 6.95%. The yield printed on top of yield talk. Initial guidance was 7¼% to 7 3/8%.
It also included $600 million of 7 1/8% notes that prices at 99.583 to yield 7.2%. The yield printed on top of talk. Initial guidance was 7½% to 7¾%.
Barclays, BofA Securities, Inc., Citigroup Global Markets Inc., J.P. Morgan Securities LLC and Goldman Sachs & Co. LLC were the joint bookrunners.
Proceeds will be used to finance new green projects, or to refinance existing ones.
| Issuer: | ZF North America Capital Inc.
|
| Amount: | $1.2 billion
|
| Securities: | Senior secured green notes
|
| Joint bookrunners: | Barclays, BofA Securities, Inc., Citigroup Global Markets Inc., J.P. Morgan Securities LLC and Goldman Sachs & Co. LLC
|
| Call: | Non-callable
|
| Trade date: | April 4
|
| Ratings: | Moody's: Ba1
|
| S&P: BB+
|
|
|
| Five-year notes
|
| Amount: | $600 million
|
| Tenor: | Five years
|
| Coupon: | 6 7/8%
|
| Price: | 99.688
|
| Yield: | 6.95%
|
| Spread: | Treasuries plus 355 bps
|
| Price talk: | 6.95%
|
|
|
| Seven-year notes
|
| Amount: | $600 million
|
| Tenor: | Seven years
|
| Coupon: | 7 1/8%
|
| Price: | 99.593
|
| Yield: | 7.2%
|
| Spread: | Treasuries plus 381 bps
|
| Price talk: | 7.2%
|
|
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