Suez shores up GE Water deal with second refinancing step

Suez has taken a second step to refinance its acquisition of GE Water through an offering of undated deeply subordinated hybrid bonds priced at €600 million.

Suez is taking steps to refinance its all-cash, €3.2 billion acquisition of GE Water

Suez is taking steps to refinance its all-cash, €3.2 billion acquisition of GE Water

The Paris, France-based global water company, with Canada’s Caisse de depot et placement du Quebec, agreed to acquire GE Water for €3.2 billion on 8 March 2017. The hybrid bonds form the second piece of refinancing to cover the deal, along with €1.2 billion of senior unsecured notes issued on 3 April 2017.

The hybrid bonds have an initial fixed coupon of 2.875 per cent, which is to be revised seven years from issuance on the basis of the five-year swap rate, and then every five years. They are accounted for as 100 per cent equity according to International Financial Reporting Standards (IFRS), and as 50 per cent equity by rating agency Moody’s. They are expected to be rated Baa2 with a stable outlook by Moody’s, in line with outstanding hybrid bonds issued by Suez in 2014 and 2015.

A prospectus will be available on Suez’s website in due course.

Top five facts about the Suez-GE Water deal


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