By Cristal Cody
Chicago, Sept. 19 – LG Energy Solution, Ltd. priced a $1 billion debut green bond offering in two parts (Baa1/BBB+) on Monday, according to information from a market source and a press release from the company.
The company priced $400 million of 5 5/8% notes with a three-year tenor at Treasuries plus 100 basis points. Initial talk was in the 140 bps area.
The second tranche priced as $600 million of 5¾% five-year notes at Treasuries plus 130 bps, again approximately 40 bps lower than talk in the 170 bps area.
BofA Securities, Citigroup, Morgan Stanley, Standard Chartered Bank and Korea Development Bank are bookrunners for the Rule 144A and Regulation S offering.
The company reported oversubscriptions of more than 5x from 114 accounts on the three-year tranche and from 186 institutions on the five-year notes.
Proceeds will be used for eligible green projects.
The Seoul-based battery maker is a subsidiary of LG Chem, Ltd.
| Issuer: | LG Energy Solution, Ltd.
|
| Amount: | $1 billion
|
| Issue: | Green bonds
|
| Bookrunners: | BofA Securities, Citigroup, Morgan Stanley, Standard Chartered Bank and Korea Development Bank
|
| Trade date: | Sept. 18
|
| Ratings: | Moody’s: Baa1
|
| S&P: BBB+
|
| Distribution: | Rule 144A and Regulation S
|
|
|
| Three-year notes
|
| Amount: | $400 million
|
| Maturity: | Sept. 25, 2026
|
| Coupon: | 5 5/8%
|
| Spread: | Treasuries plus 100 bps
|
| Price talk: | Treasuries plus 140 bps area
|
|
|
| Five-year notes
|
| Amount: | $600 million
|
| Maturity: | Sept. 25, 2028
|
| Coupon: | 5¾%
|
| Spread: | Treasuries plus 130 bps
|
| Price talk: | Treasuries plus 170 bps
|
|
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