Commentary & Deal Flow

Project Grand (UK) Plc (Purmo Group) (PURGRO) EUR380m 144A/Reg S sustainability-linked sr sec notes due 06/01/29 (5y). NC2 (06/01/26) (MWC B+50bp), then at 104.50, 102.25, 100. Equity claw: 2y 40%. Special call: 10% per year the first 2 years at 103. B3/B/B+ (stable/stable/stable). Via Jefferies/RBC (B&D) jt glocos and sustainability structuring advisors/Danske (Nordic gloco) jt physical books/StanChart/RBI/SMBC Nikko jt books, Apollo as co-manager. No reg rights. List ISE. NY law. SMR at 100 if the acquisition has not closed within 1 year from the issue date. Settles 07/16 (T+11). IPT: 9.25%-9.50%. Price talk: 9.00%-9.25%.

Priced: 9.00% at 100. +655bp vs DBR 2.10% 04/12/29.

Roadshow (virtual meetings) 06/25-26 (investor call at 1pm UKT 06/25). Books closed at 10:30am 06/28. UOP: fund the acquisition of Purmo Group by Apollo and Rettig Ltd (EUR456m equity purchase price (EUR11.15 per share) and EUR276m repayment of existing debt), and EUR30m for bolt-on acquisitions. The sponsors will contribute EUR425m in equity (EUR340m Apollo and EUR85m Rettig Ltd). Biz: provides indoor climate HVAC systems and services for residential and commercial buildings. HQ: Helsinki, Finland. (Acquisition announced 04/262024).

Sustainability Performance Target 1: Reduction of Scope 1 and 2 absolute greenhouse gas emissions by 12% by 31-Dec-2027, from a 2022 base year.

Sustainability Performance Target 2: Reduction of Scope 3 absolute greenhouse gas emissions by 3% by 31-Dec-2027, from a 2022 base year.

Coupon Step-up Mechanism: +12.5 bps or +25 bps per annum depending on whether one or two of SPT1/SPT2 are not satisfied by 31-Dec-2027.

Netroadshow: https://www.netroadshow.com/nrs/home/#!/?show=a1f89283 | Access Code PURMO24.