By Paul A. Harris
Portland, Ore., April 16 – ZF North America Capital Inc. (Ba1/BB+) priced $1.5 billion of green senior bullet notes in two tranches in a Tuesday drive-by, according to market sources.
The deal featured an $800 million tranche of six-year notes that priced at par to yield 6¾%. The yield printed at the tight end of yield talk in the 6 7/8% area. Initial guidance was in the 7% area.
The offering also featured a $700 million tranche of eight-year notes that priced at par to yield 6 7/8%. The yield printed at the tight end of yield talk in the 7% area. Initial guidance was in the 7 1/8% area.
Demand across both tranches came to around $3.7 billion, according to a bond trader, who added that demand was skewed toward the shorter maturity paper.
The bonds in both tranches were wrapped around par in late Tuesday afternoon trading, the trader added.
The Northville, Mich.-based automotive parts supplier plans to use the proceeds to exclusively finance and/or refinance, in whole or in part, new or existing green projects.
| Issuer: | ZF North America Capital Inc.
|
| Amount: | $1.5 billion
|
| Issue: | Senior green notes
|
| Active bookrunners: | J.P. Morgan Securities LLC, Barclays, BofA Securities Inc., Mizuho Securities USA Inc. and Santander US Capital Markets LLC
|
| Trade date: | April 16
|
| Ratings: | Moody’s: Ba1
|
| S&P: BB+
|
| Distribution: | Rule 144A and Regulation S
|
| Marketing: | Drive-by
|
|
|
| Six-year notes
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| Amount: | $800 million
|
| Tenor: | Six years
|
| Coupon: | 6¾%
|
| Price: | Par
|
| Yield: | 6¾%
|
| Spread: | 206 bps
|
| Call protection: | Make-whole call until one month prior to maturity, then callable at par
|
| Price talk: | 6 7/8% area
|
|
|
| Eight-year notes
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| Amount: | $700 million
|
| Tenor: | Eight years
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| Coupon: | 6 7/8%
|
| Price: | Par
|
| Yield: | 6 7/8%
|
| Spread: | 221.8 bps
|
| Call protection: | Make-whole until two months prior to maturity, then callable at par
|
| Price talk: | 7% area
|
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