By Paul A. Harris
Portland, Ore., April 17 – Vallourec SA priced an $820 million issue of eight-year senior notes (Ba2/BB+/BB+) at par to yield 7½% on Wednesday, according to market sources.
The yield printed 12.5 basis points inside of yield talk in the 7¾% area. Initial guidance was in the high-7% to 8% area.
The deal was playing to $2 billion of demand on Wednesday morning, according to a trader, who added that some accounts walked away when pricing discussions dropped below 7 5/8%.
Barclays, Wells Fargo, BNP Paribas and Natixis were the global coordinators. Physical bookrunners were Barclays and Wells Fargo, and joint bookrunners are BNP Paribas, Natixis, Commerz, Fifth Third, JPMorgan, Morgan Stanley and U.S. Bancorp.
The France-based manufacturing company, which specializes in hot rolled seamless steel tubes, plans to use the proceeds to refinance its euro-denominated unsecured notes and repay bank debt.
| Issuer: | Vallourec SA
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| Amount: | $820 million
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| Issue: | Senior notes
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| Maturity: | April 15, 2032
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| Global coordinators: | Barclays (bill and deliver), Wells Fargo, BNP Paribas and Natixis
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| Physical bookrunners: | Barclays and Wells Fargo
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| Joint bookrunners: | BNP Paribas, Natixis, Commerz, Fifth Third, JPMorgan, Morgan Stanley and U.S. Bancorp
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| Coupon: | 7½%
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| Price: | Par
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| Yield: | 7½%
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| Spread: | 286 bps
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| First call: | April 15, 2027 at 103.75
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| Trade date: | April 17
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| Settlement date: | April 23
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| Ratings: | Moody’s: Ba2
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| S&P: BB+
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| Fitch: BB+
|
| Distribution: | Rule 144A and Regulation S for life
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| Price talk: | 7¾% area
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| Marketing: | Roadshow
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