Successful placement of the €500 million notes offering
3 min
May 21, 2015
NOT FOR DISTRIBUTION, DIRECTLY OR INDIRECTLY, IN THE UNITED STATES, AUSTRALIA, CANADA OR JAPAN
Rexel, global leader in the distribution of electrical supplies, has successfully placed €500 million of its 3.250% unsecured senior notes due 2022 (the ”Notes”).
The delivery and settlement and the listing of the notes on the Euro MTF market of the Luxembourg Stock Exchange are expected to occur on or about May 27, 2015.
The Notes will mature on June 15, 2022 and will be non-callable until 2018. They will rank pari passu with Rexel’s senior credit facility and other senior unsecured notes. The Notes’ ratings are expected to be in line with the current rating of Rexel’s other outstanding senior unsecured notes, Ba3 by Moody’s (while Rexel’s corporate rating is Ba2 with a stable outlook), BB by S&P (in line with Rexel’s corporate rating with a stable outlook) and BB by Fitch (in line with Rexel’s corporate rating with a stable outlook).
The proceeds of the issuance of the Notes will be used to redeem US$ 500 million principal amount of Rexel’s 6.125% USD senior notes due 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.
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 acted as Joint Global Coordinators, and as Joint Lead Bookrunners for the offering, BofA Merrill Lynch, CM-CIC, ING and J.P. Morgan acted as Joint Bookrunners, and BayernLB, Natixis and Standard Chartered Bank acted as Co-Lead Managers.
Catherine GUILLOUARD, Deputy CEO and Group CFO, said:
“The success of this new seven-year note issuance confirms investor confidence in Rexel’s business model and strategy. It will allow us to refinance the 6.125% notes issued in 2012 at a significantly lower cost.
Combined with the recent renegotiation of our senior credit facility and early repayment of the 7% notes issued in 2011, this operation constitutes a further step in our continuous efforts to strengthen our balance sheet and reduce our cost of financing.”