Rexel launches €500 million note offering
2 min
May 19, 2015
NOT FOR DISTRIBUTION, DIRECTLY OR INDIRECTLY, IN THE UNITED STATES, AUSTRALIA, CANADA OR JAPAN.
Rexel announced today that it intends to offer €500 million of senior unsecured notes due in 2022 (the “Notes”). The Notes will be non-callable until 2018. They will rank pari passu with Rexel’s senior credit facility and other senior unsecured notes.
The proceeds of the issuance of the Notes will be used to redeem Rexel’s 6.125% senior U.S. dollar notes issued on March 28, 2012 and on April 23, 2012 (for the additional notes) due December 2019 (the “2019 Notes”), and for general corporate purposes. Rexel will redeem the 2019 Notes at their applicable make-whole redemption premium, plus accrued and unpaid interest. Rexel can elect not to redeem the 2019 Notes if it does not issue at least €400 million of Notes or if there is a material change in financial markets.
The Notes will be offered exclusively to investors outside the United States and are expected to be listed on the Luxembourg Stock Exchange (Euro MTF).
Rexel expects the Notes to be rated by Moody’s, Fitch and Standard & Poor’s. Ratings announcements are expected to be released shortly by the respective rating agencies.
This issuance will allow Rexel to enhance its financial flexibility by extending its debt maturity profile and reducing its overall cost of financing.
Crédit Agricole CIB, HSBC and Société Générale will act as Joint Global Coordinators, and as Joint Lead Bookrunners. BofA Merrill Lynch, CM-CIC, ING and J.P. Morgan will act as Joint Bookrunners for the Notes offering. Bayerische Landesbank and Natixis will act as Co-Lead Managers.