Schneider Electric launches bonds to raise €800m, offers to partially buy back July 2013 bond

Tuesday, Jul 13, 2010

Schneider Electric has launched two bond issues to raise a total €800m and has offered to partially buy back its July 2013 bond, it announced Monday (July 12).

The transactions are intended to refinance the energy management company's debt, notably a €900m bond maturing in August, and to extend their debt duration.

The partial buy-back of the July 2013 bond will also lead to a reduction of the cost of financing from 2011 onwards.

The first issue is a €300m bond maturing in July 2016, which was priced at mid-swap +73bp, leading to a fixed coupon of 2.875%.

The second issue is a €500m bond maturing in July 2020, which was priced at mid-swap +88bp, leading to a fixed coupon of 3.625%.

Schneider Electric is also launching an offer for the partial buy-back of its bond maturing July 2013, which bears a fixed coupon of 6.75%.