Borealis Gets Dual-Currency Deal via Mitsubishi
June 17, 2009
Borealis Get’s Dual-Currency Deal via Mitsubishi
Austria-based plastics company Borealis AG tapped the U.S. private market last week with a $91 million, dual-currency deal led by Mitsubishi UFJ Securities (USA), sources confirmed.
The transaction was considered NAIC-2 and priced in three tranches:
$5 million, seven-year tranche at 565 basis points over Treasurys
$38 million, 10-year tranche at 580 basis points over Treasurys
£30 million ($48.7 million), 12-year tranche at 550 basis points over Treasurys
The deal was being watched closely by the sellside as a litmus test of investor demand, since it is outside the realm of non-cyclical, NAIC-1 and high NAIC-2 deals that have priced in the private market recently. Some sources said the very fact the deal was able to get done should be considered a success, hopefully opening the way for more diverse credits to hit the market.
At least one buyside source said he liked the deal because it was structured with “a lot of downside protections,” and because the credit is owned by Abu Dhabi-based International Petroleum Investment Company and Vienna-based OMV Aktiengesellschaft, a leading oil and gas group in central Europe.
Headquartered in Vienna, Borealis supplies plastic materials to the infrastructure, automotive, and advanced packaging materials across Europe, the Middle East, and Asia. The company has service centers and production facilities around the world, employing 5,000 people in 35 nations, according to information on its Web site.
For the fourth quarter of 2008, Borealis reported a net lost of 122 million euro ($169 million) on sales revenue of 1.34 billion euro, versus a net profit of 533 million euro on sales revenue of 6.35 billion euro for the year-prior period.---GC
For more information on related topics, visit the following:
