Commentary & Deal Flow

ZF Europe Finance BV (ZFFNGR) EUR1bn (from EUR750m and benchmark size) Reg S bearer fixed-rate sr unsec notes due 02/17/32 (6y). NCL (MWC B+45bp, 3mo par call (11/17/31), 80% clean-up call). Ba2/BB- (negative/stable) gtd by ZF Friedrichshafen AG. Via BNP (B&D)/Commerz/LBBW/Unicredit jt glocos and active books/DZ/ING/SEB/SMBC passive books. Off the EMTN Programme. List lux. German law. CoC at 100. Pays annual Feb 17, starting 02/17/27 (Act/Act). Denoms: 100kx100k. Settles 02/17 (T+6). ISIN: XS3296386264. IPT: 6.00% area. Guidance: 5.625% area (+/-12.5bp) WPIR. Final terms: EUR1bn at 5.50%.

Priced: 5.50% at 100. +302.6bp vs DBR 0.00% 02/15/32, MS+293.1bp.

Books went subject at 1:30pm UKT 02/09. Final book in excess of EUR3bn, from EUR3.3bn (pre-rec, at tight-end of guuidance), from EUR3bn (pre-rec). UOP: GCP, including refinancing of existing debt and financing the tender offer of ZF Finance GMBH's EUR500m 2.00% due 05/06/27 (99.40 tender price) and EUR500m 2.75% notes due 05/25/27 (100.10 tender price) (dealer managers: Santander/Citi/ING/JPM). Biz: a global technology company supplying systems for passenger cars, commercial vehicles and industrial technology. HQ: Friedrichshafen, Germany.

Dealroadshow link: https://dealroadshow.com/e/ZFGROUP2026. Entry code: ZFGROUP2026.

ZF Friedrichshafen EUR benchmark 6-year - Comparables €€€

* Indicative pre announcement bid side levels (i-spread) *