By Paul A. Harris
Portland, Ore., Feb. 9 – Milan-based financial services provider Instituto Centrale delle Banche Popolari Italiane SpA (ICBPI) priced a €600 million issue of senior secured fixed-rate PIK toggle notes due May 30, 2021 (existing ratings B3/B) at par to yield 7 1/8% on Thursday, according to a market source.
The notes pay a cash coupon of 7 1/8%, which steps up to 7 7/8% in the event of an in-kind payment.
The yield printed at the tight end of yield talk in the 7¼% area.
Global coordinator Deutsche Bank will bill and deliver. BofA Merrill Lynch is also a global coordinator.
UBS, Banca IMI, JPMorgan and Goldman Sachs are joint bookrunners.
Proceeds will be used to fund the acquisitions of the merchant acquiring business of Banca Monte dei Paschi di Siena, as well as Bassilichi SpA and DB Cards, or for general corporate purposes.
The issuing entity will be Mercury BondCo plc, the majority shareholder of ICBPI.
| Issuer: | Instituto Centrale delle Banche Popolari Italiane SpA (ICBPI)
|
| Amount: | €600 million
|
| Maturity: | May 30, 2021
|
| Securities: | Senior secured fixed-rate PIK toggle notes
|
| Global coordinators: | Deutsche Bank (bill and deliver), BofA Merrill Lynch
|
| Joint bookrunners: | HSBC, UBS, Banca IMI, JPMorgan, Goldman Sachs
|
| Cash coupon: | 7 1/8%
|
| PIK coupon: | 7 7/8%
|
| Price: | Par
|
| Yield: | 7 1/8%
|
| First call: | Nov. 30, 2017 at 103.563
|
| Trade date: | Feb. 9
|
| Settlement date: | Feb. 16
|
| Expected ratings: | Moody's: B3
|
| S&P: B
|
| Distribution: | Rule 144A and Regulation S for life
|
| Price talk: | 7¼% area
|
| Marketing: | Roadshow
|
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