Michelin launches bond issue

Michelin reports its successful placement of a bond issue in two tranches: a €300 million seven-year tranche with a 1.125 per cent coupon and a €300 million 12-year tranche with a 1.750 per cent coupon.

The issuer of the notes is Michelin Luxembourg SCS, with the guarantee of holding company the Compagnie Financiere du Groupe Michelin, “Senard et Cie”. The issue has been rated BBB+ by Standard & Poor’s and A3 by Moody’s.

Reporting the placement, Michelin notes that investor response was “very favourable” and that the issue was “heavily oversubscribed”. This, it adds, attests to the “market’s confidence in the Group’s creditworthiness and demonstrates the excellent geographic diversification of its investor base.”

The bond issue supports the Michelin Group’s strategy of actively managing its debt and strengthening its liquidity. It helps to diversify Michelin’s sources of financing and enhance its financial flexibility by lengthening the average maturity of its debt.

Crédit Agricole CIB, Deutsche Bank, HSBC, Natixis and MUFG were joint lead managers for the issue.