Schaeffler cuts debt cost with €1.2bn PIK

By Olivier Holmey
23 Oct 2014

The healthy demand for Schaeffler’s three tranche bond issue on Tuesday October 21, €1.2bn-equivalent of senior secured payment-in-kind toggle notes, will help the German car parts company to cut the interest rate burden of its indebted holding company.

Each of the deal’s three tranches, rated B1/B, was priced at the tight end of a 25bp guidance range. Schaeffler described the operation as having “very high demand for the notes in both Europe and the US, [which has] led to an oversubscription of ...

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