by Stephen Carter
Oct 02, 2024 9:04 AM ET
IHO Verwaltungs GmbH (IHOVER) up to EUR2.2bn equivalent (EUR/US$) 144A/Reg S sustainability-linked sr sec PIK toggle notes four-part. Expect Ba2/BB-/BB. Via DB sole EUR physical books/Citi sole US$ physical books/BNP/BofA jt books. No reg rights. List Lux. NY law. CoC at 101. The first two and last interest payments will be in cash. Coupon steps up 75bp if PIK
- EUR400m minimum due 2029 (5y). N2 (MWC B+50bp) (50%,25%,par). Equity claw: 2y 40%. Price talk: 6.50%-6.75%.
- EUR400m minimum due 2031 (7y). NC3 (MWC B+50bp) (50%,25%,par). Equity claw: 3y 40%. Price talk: 6.75%-7.00%
- US$400m minimum due 2030 (6y). NC2 (MWC T+50bp) (50%,25%,par). Equity claw: 2y 40%. IPT: mid 7s. Price talk: 7.50%-7.75%.
- US$400m minimum due 2032 (8y). NC3 (MWC T+50bp) (50%,25%,par). Equity: 3y 40%. IPT: high 7s. Price talk: 7.75%-8.00%.
Roadshow 09/30-10/01 (small group meetings) (investor call at 3pm UKT 09/20). Books close EUR at 4pm UKT / US$ 1pm NYT 10/02. Pricing 10/02 NYT afternoon. UOP: along with cash on hand and the close-out of cross-currency hedges on certain of the redeemed notes, to redeem in full its existing EUR750m 1st line notes due 09/15/26 (callable at 100), US$500m 4.75% 1st lien notes due 09/15/26 (callable at 100), EUR500m 3.875% sec PIK notes due 05/15/27 (callable at 100) and US$450m 6.00% sec PIK notes due 05/15/27 (callable at 100). Biz: Holding and finance company owned by the Schaeffler family (ownership interests include auto parts manufacturers IHO Holdings Schaeffler AG (75.1%), Continental AG (36%), and Vitesco Technologies AG (38.9%)). HQ: Herzogenaurach, Germany. https://www.netroadshow.com/nrs/home/#!/?show=e122bd26 (code: IHO2024)
Sustainability performance bond target: reduction of absolute Scope 1+2 GHG emissions of Schaeffler AG by 75% by12/31025 and, for the 2031 and 2023 maturities only 90% by 12/31/30, in each case vs 2019 baseline, with related step up mechanism (20bp per annum until the KPI is met).