Suez has priced an offering of €1.2 billion ($1.3 billion) senior unsecured notes, in the first step of refinancing the acquisition of GE Water & Process Technologies.
The offering consists of two tranches, issued under the Suez EMTN (Euro Medium Term Note) programme. The first tranche covers €500 million of notes, due on 3 April 2025, with an annual coupon of 1 per cent. The second is for €700 million, due on 3 April 2029, with a 1.5 per cent annual coupon.
The net proceeds of the bond issue will be used to refinance, early, a portion of the bridging loan that helped Suez to cover the €3.2 billion all-cash price of GE Water.
The bonds are expected to be rated A3, with a stable outlook, by Moody’s, in line with Suez’s rating. The offering will be settled on 3 April 2017.