Commentary & Deal Flow

Constellium SE (CSTM) EUR300m 144A/Reg S sustainability-linked sr notes due 07/15/29 (8y). NC3 (MWC B+50bp), then at at 101.688, 100.844, 100  (premium based on step-up coupon). Equity claw: 3y 35% at 103.125. B2/B (stable/stable). Via BNP sole physical books/DB lead books/Barc/Citi/CS/GS/SocGen/WFS jt books, IMI, Ramirez as co-managers. No reg rights. List Lux. NY law. Trade date today (05/17(. Settles 06/02. RegS ISIN: XS2335148024 SPT 1: reduction of greenhouse gas emissions (ghg) intensity equal or lower than 0.615 tco2e per ton sold for the full year of 2025, 12.5bps step-up in pricing starting after July 15, 2026, if SPT 1 not met. SPT 2: increased use of recycled aluminium input equal or higher than 685kt for the full year of 2026, 12.5bps step-up in pricing starting after july 15, 2027, if SPT 2 not met. IPT: 3.50% area. Final px talk: 3.25% area (+/- 0.125%).

Priced: 3.125% at 100. +341bp vs DBR 0.25% 02/15/29.

Did investor call at 11am UKT today (telephonic 1x1s available). Books closed at 3:30pm UKT today.  UOP: along with cash on hand, to redeem its $400m 5.75% sr notes due 05/15/24 at 100.958 on 06/16/21. Biz: designs and manufactures a broad range of rolled and extruded aluminum products for the packaging, aerospace and automotive end markets. HQ: Paris, France.