Commentary & Deal Flow

+++Correction: there is no special call on the FRN tranche+++

PCF GmbH (Pfleiderer) EUR750m 144A/Reg S sustainability-linked sr sec fixed/floating rate notes 2-part. B2/B/BB- (stable/stable/stable). Via GS (B&D)/CS jt glocos and jt physical books/BofA/DB/JPM jt sr books/Commerz jt books. No reg rights. List ISE. NY Law. S-L intermediate KPI tarets: 1. a reduction in EWP's GHG to 201.7kT or lower by the end of 2022, representing a 8.4% reduction from 2020 baseline; and 2. an increase in EWP's proportion of recycled wood used to 44% by the end of 2022, from 2020 baseline of 40.3%. S-L coupon step-up: 12.5bp per KPI target.

- expect EUR450m fixed-rate notes due 2026 (5y). NC2 (MWC B+50bp) (50%,25%,par). Equity claw: 2y 40%. Special call: 10% per year the first 2 years at 103.00.  IPT: 5.00% area. Px talk: 4.75%-5.00%.

- expect EUR300m FRN due 2026 (5y). NC1 (MWC B+50bp), then at 101, 100. Equity claw: 2y 40%. Floats/pays quarterly 3mE (0% floor). IPT: E+500-525bp at par. Px talk: E+475bp-500bp (0.0% floor) at par.

Roadshow 04/12-14 (investor call at 11am UKT 04/12). Books close at 2pm UKT today. Pricing today UK afternoon. UOP: along with EUR41m cash on hand, to repay EUR445m term loan, and fund EURR331m distribution to shareholders. Equity sponsor: Strategic Value Partners. Biz: a manufacturer of premium engineered wood products and laminates for high-end applications primarily in the Western European kitchen and furniture end markets. HQ: Neumarkt in der Oberpfalz.