Scandinavian Enviro Systems (Enviro) is developing a public, international corporate bond to finance the company’s ownership of forthcoming recycling plants for end-of-life vehicle tyres. The work to develop the bond is being carried out in collaboration with the London-based financial adviser, Zenzic Partners.
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Pirelli & C. S.p.A. reports that it yesterday launched and successfully concluded the placement of a 600 million euro bond loan. Placed with international institutional investors, the unrated bond loan has a five-year duration at a fixed rate. The tyre maker reports that at closing, the loan received total orders of 2.4 billion euros from approximately 280 international investors.
Michelin has announced the successful placement of a US$600 million offering of non-dilutive cash-settled convertible bonds due 2023 (the “Bonds”) following the exercise in full of the increase option. Concurrently, Michelin purchased cash-settled call options (the “Call Options”) to hedge its economic exposure to the potential exercise of the conversion rights embedded in the Bonds. Since they will only be cash-settled, the Bonds will not result in the issuance of new shares or the delivery of existing shares of Michelin (the “Shares”) upon conversion.
Today, Michelin has announced the launch of a US$500 million offering of non-dilutive cash-settled convertible bonds due 2023 (the Bonds), which may be increased up to $600 million if the increase option is exercised in full. Michelin will purchase cash-settled call options (the Call Options) to hedge its economic exposure to the potential exercise of the conversion rights embedded in the Bonds. Since they will only be cash-settled, the Bonds will not result in the issuance of new shares or the delivery of existing shares of Michelin (the Shares) upon conversion. This US dollar‑denominated debt will be immediately converted into euros.
Specialty chemicals company Lanxess today successfully issued a hybrid bond with a volume of 500 million euros on the European capital market. The proceeds of the transaction are to be used for the financing of the planned acquisition of US-based chemical company Chemtura.
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.
Continental reports the planned early redemption of the $950 million, 4.5 per cent coupon USD bond that company subsidiary Continental Rubber of America, Corp. issued in September 2012. The redemption will now take place on 15 September 2015, four years earlier than the original maturity date, with a redemption price of 102.25 per cent.
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.
Pirelli has concluded the placement of an unrated bond issue with international institutional investors on the Euromercato for a total nominal value of €600 million. The operation obtained the lowest coupon – 1.75 per cent – in Pirelli’s history, as well as for an Italian unrated corporate Eurobond. Pirelli comments that this demonstrates the confidence investors have in its credit. The loan was placed with over 400 international investors and attracted total orders of approximately €5 billion.
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