Commentary & Deal Flow

+++Corrects ISIN, adds the yield+++

IHO Verwaltungs GmbH (Schaeffler) (IHOVER) EUR300m (up from EUR200m) 144A/Reg S add-on to its 8.75% sustainability-linked sr sec PIK toggle notes due 05/15/28 (5y). NC2 (05/15/25) (MWC B+50bp), then at 104.375, 102.1875, 100. Equity claw: 2y 40%. 108.875. Ba2/BB-/BB (stable/stable/stable) (secured by shares in Schaeffler, Continental and Vitesco). Via DB (B&D)/BNP/BofA/Citi jt books. DB ESG coordinator. No reg rights. List Lux. NY law. Coupon steps up 75bp if PIK. SPT KPI: reduction of absolute Scope 1+2 GHG emissions of Schaeffler AG by 75% by 2025 vs 2019 baseline with related step up mechanism (SPT step interest: 25bp, and redemption price step up). Settles 04/06 (T+5). Reg S ISIN: XS2606019383. The original EUR500m issue priced 03/24/23. Final price/size: EUR300m at 101.

Priced: 8.75% add-on at 101.00, yield 8.50%.

Books closed at 11:30am UKT today. (A Netroadshow is available). UOP: along with cash on hand and the EUR500m priced 03/24/23, to redeem all of its EUR800m 3.625%/4.375% sr sec PIK toggle notes due 05/15/25 at 100 on 05/15/23. Biz: holding and finance company owned by the Schaeffler family. Its subs are auto parts manufacturers (IHO Holiding is 75.1% owner (100% voting shares) of Schaeffler AG, 46% owner of Continental AG, and 49.9% owner of Vitesco Technologies AG). HQ: Herzogenaurach, Germany.