Osnabrück, Germany — The German manufacturer of copper products, KME, issues a bond with a volume of €300 million. The bond (A2G8U5) pays investors a fixed annual interest rate of 6.75% until maturity on Feb. 1, 2023. This is paid in April and October of each year. The issue price was 98.953%, which represented a spread of +693 bps over the comparable Bund. The wholly owned subsidiary of the Milan-based Intek Group S.p.A. included three additional termination dates in the terms and conditions of the issue, in addition to a Make Whole option.
The Frankfurt office of the international law firm Weil, Gotshal & Manges LLP advised KME AG, an internationally active manufacturer of copper and copper alloys, on the successful placement of a high-yield bond with a volume of EUR 300 million and a maturity date of 2023. The proceeds of the issue will be used to redeem existing liabilities.
The placement of the bond issued by KME AG to institutional investors was managed by Goldman Sachs International, BNP PARIBAS and Deutsche Bank as Global Co-ordinators and Joint Bookrunners. KME AG’s capital market debut with this bond follows a successful internal reorganization with significant increases in value added.
Weil’s advisory team was led by Frankfurt partner Michael Kohl (Banking & Finance) and supported by partners Dr. Wolfram Distler (Banking & Finance, Frankfurt) and Dr. Ingo Kleutgens (Tax, Frankfurt), counsel Dr. Heiner Drüke (Capital Markets, Frankfurt) and Frankfurt associates Julia Schum, Steffen Giolda and paralegal Nico Schubart (all Banking & Finance, Frankfurt).
Weil has been advising the Osnabrück-based KME Group for many years on its international bank financing (borrowing base financing) as well as multi-jurisdictional factoring.