Chicago, April 24 – Mahle GmbH priced an upsized €500 million offering of 6½% senior notes due 2031 (Ba2/BB) at par on Wednesday, according to market source.
Official talk was 6½% to 6¾%, tight to initial guidance in the high-6% area.
The Rule 144A and Regulation S for life notes come with three years of call protection. The make-whole call premium is Bunds plus 50 basis points. Then, the notes are callable at par plus half the coupon, one-quarter of the coupon and then at par, with annual step-downs.
Physical bookrunner Deutsche Bank is handling billing and delivery. BNP Paribas, Citigroup and JPMorgan are also physical bookrunners.
Commerzbank, HSBC, LBBW and UniCredit are passive bookrunners.
The Stuttgart, Germany-based automotive parts manufacturer plans to use the proceeds to repay promissory notes and private placement corporate bonds, and for general corporate purposes.
The incremental proceeds resulting from the $100 million upsize of the deal will be used for general corporate purposes, including debt repayment.
| Issuer: | Mahle GmbH
|
| Amount: | €500 million
|
| Issue: | Senior notes
|
| Maturity: | May 2, 2031
|
| Bookrunners: | Deutsche Bank (billing and delivery), BNP Paribas, Citigroup, JPMorgan (active), Commerzbank, HSBC, LBBW and UniCredit
|
| Coupon: | 6½%
|
| Price: | Par
|
| Yield: | 6½%
|
| Call features: | Make-whole call at Bunds plus 50 bps until May 2, 2027; at 103.25 starting May 2, 2027; at 101.625 starting May 2, 2028 and at par thereafter
|
| Trade date: | April 24
|
| Settlement date: | May 2
|
| Ratings: | Moody’s: Ba2
|
| S&P: BB
|
| Distribution: | Rule 144A and Regulation S
|
| Price talk: | 6½% to 6¾%
|
| ISIN: | XS2810867742, XS2810867825
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