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Weil advises KME AG on 300 million euro bond issue

Cate­gory: Deals
14. Febru­ary 2018

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.

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