06/30/2021 Picard EUR1.71bn 144A/Reg S Sustainability-Linked notes 3-part. Via JPM (B&D on the fixed rate sr sec notes)/GS (B&D on the floating sr sec notes)/CS (B&D on the sr notes)/MS jt glocos/DB/HSBC/Natixis jt books. S-L bond structuring advisors GS/CS. List ISE. Settles 07/07 (T+5 UK, T+4 US).
- EUR1.4bn sr sec fixed/FRN 2-part notes. B3/B/B+ (stable/stable/negative).
- EUR750m (from EUR800m minimum and EUR450m minimum) Picard Group SAS S-L sr sec fixed rate notes due 07/01/26 (5y). NC2 (MWC B+50bp), then at 101.9375, 100.96875, 100 (one step-up starting 07/01/24 101.00, 07/01/25 100; two step ups starting 07/01/24 101.03125, 07/01/25 100). Equity claw: 2y 40% at 3.875% at 100. Reg S ISIN: XS2361342889. IPT low 4s. Px talk: 4.00% area. Final size/px: EUR750m at 3.875%. Priced: 3.875% at 100. +444bp vs DBR 0% 08/15/26.
- EUR650m (from EUR500m minimum and EUR450m minimum) Lion/Polaris Lux 4 SA S-L sr sec FRN due 07/01/26 (5y). NC1 (MWC B+50bp), then at 101, 100. Reg S ISIN: XS2361343697. Px talk: E+400bp, 0% floor, at 99.75-100. Final size/px: EUR650m E+400bp, 0% floor, at 100. Priced: 3mE+400bp, 0% floor, at 100.
- EUR310m Picard Bondco S-L sr notes due 07/01/27 (6y). NC2.5 (01/01/24) (MWC B+50bp), then at 102.6875, 101.34375, 100 (one step up starting 07/01/24 102.750, 01/01/25 101.375, 01/01/26 100; two step ups starting 07/01/4 102.8125, 01/01/25 101.40625, 01/01/26 100). Equity claw: 2.5y (01/01/24) 40% at 105.375. Caa1/CCC+/CCC+ (stable/stable/negative). Reg S ISIN: XS2361344315. IPT: high 5s. Px talk: 5.50% area. Final size/px: EUR310m at 5.375%. Priced: 5.375% at 100. +588bp vs DBR 0.50% 08/15/27.
Did investor call at 11:30am UKT 06/28. 1x1 virtual meetings were available through 06/29. Books closed at 11am UKT 06/30. UOP: along with EUR159m cash on hand, to redeem $1.25bn sr sec notes and EUR310m sr notess, fund EUR274m distribution to shareholders of Picard Bondco. Equity sponsors: Lion Capital (51.8%); The Zouari Group (IGZ) (45.4%). Biz: Leading retailer of frozen food products in France. HQ: Fountaine Bleau, France.
S-L step-ups: +12.5 bps for our CO2 emissions sustainability performance target and/or +12.5 bps for its energy consumption sustainability performance target (the call price of the Fixed Rate Senior Secured Notes and the Senior Notes will increase accordingly).
Sustainability performance targets: (1) a 6% reduction in energy consumption by its stores by 2023 compared to the baseline of 12,363 kWh °C / m3 of cold in energy consumed in 2020 (the baseline of 12,363 kWh °C / m3 of cold was calculated in good faith by the Issuers and has not been independently verified or audited by any third party) (the "Energy Sustainability Performance Target") and (2) a 10% reduction in carbon emissions from our shipping networks and logistics chains by 2023 compared to the baseline of 123 gCO2e / ton-km emitted in 2019 (the baseline of 123 gCO2e / ton-km was calculated in good faith by the Issuers and has not been independently verified or audited by any third party) (the "CO2 Sustainability Performance Target").