Chicago, March 7 – Koninklijke Ahold Delhaize NV priced a €1.6 billion triple-tranche bond deal that had a floater, a green bond and a sustainable bond (Baa1/BBB+), according to a source.
The €400 million two-year floating-rate notes did not have an ESG component and were priced at par with a Euribor plus 30 basis points coupon. Talk was Euribor plus 65 bps to 70 bps.
Seven-year green notes, sized at €500 million, priced with a 3.375% coupon at 99.297 to yield 3.49%. The spread was 78 bps to mid-swaps, or Bunds plus 116.2 bps. Initial talk was in the mid-swaps 115 bps area. The green notes were sized at €500 million before pricing.
The sustainable piece priced as €700 million of 3.875% notes at 99.651 to yield 3.912%. The spread was 120 bps on top of mid-swaps, or Bunds plus 146.7 bps. Initial talk was mid-swaps plus 145 bps to 150 bps. The tranche was set up to be benchmark size.
On the sustainable notes, there may be a step-up event based on emissions. The step-up margin is 25 bps and would be applied after March 2032.
The floaters are generally non-callable. The green notes may be redeemed with a Bunds plus 20 bps make-whole premium until the three-month par call. Similarly, the sustainable notes may be called early with a Bunds plus 25 bps make-whole premium until the three-month par call.
BofA Securities (billing and delivery) and Goldman Sachs Bank Europe SE were the global coordinators.
BNP Paribas, Deutsche Bank, ING, JPMorgan, Rabobank, SMBC, Societe Generale and Wells Fargo Securities joined the global coordinators as joint bookrunners.
The order book was above €5.8 billion, with interest evenly split at €2.1 billion on each of the ESG tranches.
Proceeds will be used for green projects, for the green notes.
The sustainability-linked notes will be used for general corporate purposes, including the refinancing of existing debt from the Profi Rom Food acquisition.
Ahold Delhaize is a retail and wholesale holding company based in Zaandam, Netherlands.
| Issuer: | Koninklijke Ahold Delhaize NV
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| Amount: | €1.6 billion
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| Bookrunners: | BofA Securities (billing and delivery), Goldman Sachs Bank Europe SE (global coordinators), BNP Paribas, Deutsche Bank, ING, JPMorgan, Rabobank, SMBC, Societe Generale and Wells Fargo Securities (joint bookrunners)
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| Sustainability coordinators: | BofA Securities and Societe Generale
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| Trade date: | March 4
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| Settlement date: | March 11
|
| Ratings: | Moody’s: Baa1
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| S&P: BBB+
|
| Distribution: | Regulation S
|
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| Floaters
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| Amount: | €400 million
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| Issue: | Floating-rate notes
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| Maturity: | March 11, 2026
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| Coupon: | Euribor plus 30 bps
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| Price: | Par
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| Yield: | Euribor plus 30 bps
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| Call features: | Non-callable
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| Change of control: | At par
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| Price talk: | Euribor plus 65 bps to 70 bps
|
| ISIN: | XS2780024977
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|
|
| Green notes
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| Amount: | €500 million
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| Issue: | Green notes
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| Maturity: | March 11, 2031
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| Coupon: | 3.375%
|
| Price: | 99.297
|
| Yield: | 3.49%
|
| Spread: | Mid-swaps plus 78 bps, or Bunds plus 116.2 bps
|
| Call features: | Make-whole call at Bunds plus 20 bps; three-month par call
|
| Change of control: | At par
|
| Price talk: | Mid-swaps plus 115 bps area
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| ISIN: | XS2780025271
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|
| Sustainable notes
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| Amount: | €700 million
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| Issue: | Sustainability-linked notes
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| Maturity: | March 11, 2036
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| Coupon: | 3.875%
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| Price: | 99.651
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| Yield: | 3.912%
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| Spread: | Mid-swaps plus 120 bps, or Bunds plus 146.7 bps
|
| Call features: | Make-whole call at Bunds plus 25 bps; three-month par call
|
| Change of control: | At par
|
| Price talk: | Mid-swaps plus 145 bps to 150 bps
|
| ISIN: | XS2780025511
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