Commentary & Deal Flow

Eramet SA (ERAFP) EUR500m (from EUR400-500m) Reg S bearer sustainability-linked sr notes due 11/30/29 (5.5y). NCL (MWC B+50bp) (3mo par call) (75% clean-up call). Ba2/NR/BB (stable/--/stable). Via CA/DB jt glocos/Natixis/SocGen active jt books/CIC/Commerz/HSBC/IMI passive jt books. List Euronext Paris. French law. Annual pay (Act/Act), short first coupon. Settles 05/30 (T+5). ISIN: FR001400QC85. IPT: high 6%-7%. Guidance: 6.75% area. Final terms: EUR500m at 6.625% yield.

Priced: 6.50% at 99.489, yield 6.625%. ms+368bp. +397bp vs DBR 2.10% 11/15/29.

Did investor calls 05/21-22 (investor Call 10:30am UKT 05/21) DB is coordinating logistics. UOP: fund the tender offer for its EUR300m 5.875% sr notes due May 2025 (ISIN: FR0013461274) (fixed tender spread +50bp, CA/DB/Natixis/SocGen jt dealer managers), and GCP. Ownership: Sorame + CEIR (Duval Family) 37.1%, French State 27%, other float 31.8%. Biz: a leading player in manganese, nickel, mineral sands, and lithium. HQ: Paris, France. Deal Roadshow: ECP2024.

Interest step-up: an interest step-up will occur if the issuer fails to achieve at least one of the following sustainability performance targets (SPT): SPT 1 (KPI 2) Carbon intensity reduction for scope 1&2 CHG emissions per ton of sellable production by 37% by 12/31/26 (from a FY 2019  baseline); SPT 2 (KPI 3) Share of supplier and customers by emissions having deconbonization targets consistent with the well-below 2 degrees C scenario of the Paris Agreement, to reach 675 in term of share of emissions by 12/31/26.

Step-up margin: +50bp per annum from the coupon payment date on 11/30/28 until the maturity date if an SPT above is not met by the Target Observation Date.

Sustainability-linked framework: https://www.eramet.com/en/news/2024/05/sustainability-linked-financing-framework-2024/.

Second-party opinion: https://www.eramet.com/en/news/2024/05/eramet-sustainability-linked-financing-framework-second-party-opinion-2024/.