(Boursier.com) — Alstom today successfully placed an issue of super-subordinated (or “hybrid”) bonds for an amount of 750 million euros. These bonds carry a fixed rate coupon of 5.868% per annum for the first 5.25 years with a rate reset every 5 years thereafter. They constitute senior subordinated securities with an indefinite duration of the issuer.
Moody’s has informed the issuer that it will consider the bonds issued as 50% equity with a Ba2 rating, two notches below Alstom’s Baa3 long-term rating.
The issue was massively oversubscribed reflecting strong demand from different geographies and categories of investors.
The issue is part of the 2 billion euro debt reduction plan previously announced by Alstom. The proceeds of this issue, as well as those of the other components of the debt reduction plan, will be used to repay approximately 1.2 billion euros of short-term debt by September 2024 and the balance will be invested in short-term instruments very liquid and will be allocated to reducing the gross debt when it matures.
BNP Paribas, BofA Securities Europe and HSBC were mandated by the issuer as global coordinators and co-lead managers on this operation. Citigroup Global Markets Europe, Natixis, SMBC Bank EU, UniCredit Bank acted as active bookrunners, while Commerzbank Aktiengesellschaft and Intesa Sanpaolo acted as passive bookrunners. PJT Partners and Perella Weinberg Partners acted as financial advisors to Alstom, Cleary Gottlieb Steen & Hamilton LLP acted as legal advisors to Alstom and White & Case LLP served as legal advisors to the banks.
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