Glencore refinances and extends ahead of Burckhardt debut
18/09/2020 17:41
LONDON, Sept 18 (IFR) - Glencore part-refinanced an upcoming
maturity on Tuesday with a SFr225m (US$247m) 6.5-year deal,
extending its Swiss franc curve by 18 months.
IPTs were sent out on Tuesday morning at mid-swaps plus
140bp–145bp, with books opening for a SFr150m minimum at the
same level, finally pricing SFr225m at the tight end, equivalent
to Swiss governments plus 150.4bp, or a 0.905% yield.
The level was broadly flat to Glencore's extrapolated Swiss
franc curve, as well as to its euro curve, and came inside the
company's US dollar curve, when adjusted for the cross-currency
basis swap.
It partly refinances an upcoming SFr500m 1.25% issue due in
December this year.
Unusually for the Swiss market, the bonds feature a
three-month par call.
They were issued by Glencore Capital Finance DAC, guaranteed
by Glencore plc, Glencore International AG and Glencore
(Schweiz) AG.
Credit Suisse and UBS were leads.
Looking forward, Burckhardt Compression Holding, a Swiss
company making reciprocating compressor systems, is holding a
fixed income investor call on Monday September 21 via ZKB ahead
of a potential senior unsecured issue.
Proceeds from any resulting bond issue will be used to
finance the purchase of the remaining 40% of shares in Shenyang
Yuanda Compressor, a Chinese company in which it took a 60%
interest in March 2016.
(This story will appear in the September 19 issue of IFR
Magazine)
((jon.penner@thomsonreuters.com; +44 207 542 7348; Reuters
Messaging: jon.penner.thomsonreuters.com@reuters.net))
((C4 SFR))