Michelin places €209 million 30-year bond issue

Michelin has successfully placed a €209 million thirty-year bond issue with a 3.250 per cent coupon. The issuer of the bonds is Michelin Luxembourg SCS, with the guarantee of the Compagnie Financiere du Groupe Michelin, “Senard et Cie”. The issue has been rated BBB+ by Standard & Poor’s and A3 by Moody’s.

This tyre maker comments that the new bond issue was “priced at attractive conditions,” an occurrence that “attests the market’s confidence in the Group’s creditworthiness in the long term” and allows Michelin to further diversify its funding sources.

Michelin states that the issue supports its strategy of actively managing debt and strengthening liquidity. It helps to enhance the company’s financial flexibility by lengthening the average maturity of its debt.

Crédit Agricole CIB and Deutsche Bank were joint lead managers for the issue.