Sodexo shrugs off US PP furore and fall in revenue with €6.2bn of orders

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By Mike Turner
08 Jul 2020

Sodexo, the French food service and facilities management firm, saw bumper demand for its €1bn no-grow dual-tranche bond issue on Wednesday, a day after it reported a 30% drop in revenue, and weeks after it shocked the US private placement (PP) market by saying it would repay around $1.6bn of debt early as it could do better in other financing markets.

On Wednesday morning, Sodexo, rated A- by S&P, opened books for a €500m 3.5 year bond at 130bp-135bp over mid-swaps and a €500m eight year at 170bp-175bp.

Citigroup, Goldman Sachs, Natixis and Santander were bookrunners.

The issuer had a clear run at the market, with no other deals to take ...

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