Chicago, Sept. 19 – ELO (formerly known as Auchan Holding) priced €750 million of 6% sustainability-linked bonds due 2029 (BBB-) on Tuesday, according to a bank source.
The bonds priced at 99.515 to yield 6.116%, or at mid-swaps plus 278 basis points.
Initial price talk was in the mid-swaps plus 300 bps area. Guidance was brought into the mid-swaps plus 280 bps range, plus or minus 2 bps, before the morning wrapped in Europe.
There is a Bunds plus 50 bps make-whole call option and then a three-month par call option.
The coupon will be linked to a reduction in scope 1, 2 and 3 emissions.
There are two targets. If one target is not met, the coupon will step up 12.5 bps per year. If the second target is not met, the step-up will be 25 bps per year. If neither target is not met, the maximum cumulative step-up is 75 bps. The target observation date is Dec. 31, 2026. The interest step-up date would be March 22, 2027.
ING (billing and delivery) and Societe Generale are the co-ESG structuring agents and global coordinators. They are also joint active bookrunners with Credit Agricole CIB, Deutsche Bank, HSBC and Santander. Caixa Bank and La Banque Postale are listed as passive bookrunners.
Proceeds will be used for general corporate purposes.
The final order book was roughly twice deal size and closed at over €1.55 billion.
ELO is a combination of Auchan Retail and New Immo Holding.
The food retailer is based in Croix, France.
| Issuer: | ELO
|
| Amount: | €750 million
|
| Issue: | Sustainability-linked bonds
|
| Maturity: | March 22, 2029
|
| Bookrunners: | ING (billing and delivery), Societe Generale, Credit Agricole CIB, Deutsche Bank, HSBC, Santander (active), Caixa Bank and La Banque Postale (passive)
|
| ESG structuring agents: | ING and Societe Generale
|
| Coupon: | 6%
|
| Price: | 99.515
|
| Yield: | 6.116%
|
| Spread: | Mid-swaps plus 278 bps, or Bunds plus 341.5 bps
|
| Call features: | Make-whole call at Bunds plus 50 bps; three-month par call
|
| Change of control: | Yes
|
| Trade date: | Sept. 19
|
| Settlement date: | Sept. 22
|
| Rating: | S&P: BBB-
|
| Distribution: | Regulation S
|
| Price talk: | Mid-swaps plus 300 bps area; guided to mid-swaps plus 280 bps plus or minus 2 bps with a note it would price within range
|
| Marketing: | Roadshow
|
| ISIN: | FR001400KWR6
|
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