Gestamp announced today the completion of its offering of €768 million in senior notes with a seven year maturity, consisting of a $ 350 million US Dollar tranche and a € 500 million Euro tranche. Both tranches priced at par and at the tight end of guidance, namely 5.625% for the US Dollars and 5.875% for the Euros.
Deutsche Bank (B&D), Bank of America Merrill Lynch, Bankia, Barclays, BBVA, Caixa, Commerzbank, Itau, J.P. Morgan, Santander, and Societe Generale CIB acted as joint bookrunners, and Sabadell as co-manager.
The bond issuance together with the new five-year € 850 million bank term loan and revolving credit facility significantly enhance Gestamp’s capital structure, extends its debt maturity profile and diversifies its funding sources.
The new bond and bank financing follows Gestamp’s recent announcement of the definitive agreement signed with Mitsui whereby Mitsui will invest € 297 million to acquire newly issued shares representing a 30% equity stake in Gestamp’s subsidiaries in Argentina, Brazil, Mexico and United States. Completion of the Mitsui investment in Gestamp’s Americas perimeter is pending approval from competition authorities.
According to Francisco J. Riberas, CEO of Gestamp: “we are very satisfied by the completion of our financing process amidst an extremely difficult market situation since having the endorsement of international investors is a strong positive message to our customers, employees and partners. We have always worked hard to satisfy our customers. Now we will commit to fulfill our investors’ expectations too”.