By Paul A. Harris
Portland, Ore., Sept. 28 – Grifols, SA priced approximately €2 billion equivalent of seven-year senior notes (B3/B/B+) in two tranches on Tuesday, according to market sources.
The deal included $705 million of notes that priced at par to yield 4¾%, at the tight end of the 4¾% to 5% yield talk and inside of initial talk in the low-to-mid 5% area.
The offering also included €1.4 of notes that priced at par to yield 3 7/8%, in the middle of the 3¾% to 4% yield talk and tight to initial talk in the 4% area.
BofA was the global coordinator and bookrunner.
The notes were sold via issuer Grifols Escrow Issuer, SAU.
Proceeds will be used to help finance the acquisition of 89.88% of the ordinary shares and 1.08% of the preferred equity shares of Biotest AG from Tiancheng (Germany) Pharmaceutical Holdings, to fund a tender for the remaining ordinary and preferred shares, and for general corporate purposes, which may include debt repayment (possibly including the capped redemption), capital expenditures and working capital.
Grifols is a Barcelona, Spain-based pharmaceutical and chemical manufacturer.
Issuer: | Grifols Escrow Issuer, SAU
|
Amount: | Approximately €2 billion equivalent
|
Maturity: | Oct. 15, 2028
|
Securities: | Senior notes
|
Bookrunner: | BofA (global coordinator)
|
Trade date: | Sept. 28
|
Settlement date: | Oct. 5
|
Ratings: | Moody's: B3
|
| S&P: B
|
| Fitch: B+
|
Distribution: | Rule 144A and Regulation S
|
Marketing: | Roadshow
|
|
Dollar notes
|
Amount: | $705 million
|
Coupon: | 4¾%
|
Price: | Par
|
Yield: | 4¾%
|
Spread: | 337 bps
|
First call: | Oct. 15, 2024 at 102.375
|
Price talk: | 4¾% to 5%
|
|
Euro notes
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Amount: | €1.4 billion
|
Coupon: | 3 7/8%
|
Price: | Par
|
Yield: | 3 7/8%
|
Spread: | 425 bps
|
First call: | Oct. 15, 2024 at 101.938
|
Price talk: | 3¾% to 4%
|
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