Moody’s assigned a provisional rating of Baa3 to Dell Inc.’s proposed senior secured notes.
The debt is being issued by Diamond 1 Finance Corporation (“Finco 1”) and co-issuer Diamond 2 Finance Corporation (“Finco 2”), which are entities that will merge into Dell International LLC (a debt issuing subsidiary of Dell Inc.) and EMC Corporation (“EMC”), respectively, upon closing of the Dell EMC merger.
Post closing of the transaction, Dell International and EMC will assume all of Finco 1’s and Finco 2’s obligations under these notes.
The Dell – EMC merger is expected to close by the end of October 2016.
Swedish oil refiner Corral Petroleum Holdings priced its € 570m, 11.750% / 13.250% Senior PIK Toggle Notes and an SEK 500m, 12.250% / 13.750% Senior PIK Toggle Notes, both due 15 May 15 2021.
The Euro notes were priced at 98.578% of their principal amount and the SEK notes were priced at 99.043% of their principal amount.
Interest on each of the notes is semi-annual in nature, on 1 July and 1 January of each year, commencing on 1 January 2017.
The proceeds from the offering will be used to repay its existing $613m, 15% euro-denominated and dollar-denominated senior notes due 31 December 2017, with the remainder to be retained by Corral for the purpose of making cash interest payments on the Notes.
Source: Company Press Release
Turkish state-owned lender Vakifbank plans on issuing up to TRL 16bn ($5.7bn) of bonds.
The bonds would have a maturity of five years.
Chinese telecom company Huawei Technologies Co. is planning to raise a $2bn through a USD-denominated bond maturing in 2026.
The company is still in discussions with banks on the terms of the issuance and the size of the deal.
Banks likely to manage the bond issue include DBS Bank, ANZ Banking Group, Standard Chartered and Bank of China.
According to bankers, it appears that the deal could be completed as early as April 2016.
Previously, the company had issued a $1bn USD bond last year, which was oversubscribed.
Spanish utility company Iberdrola S.A. closed an issuance of €1bn in green bonds priced at 99.943% of their nominal value. Proceeds would be utilized to refinance its onshore wind park assets in Spain, Portugal and the UK.
Green bonds are issued to fund projects that have positive environmental and/or climate benefits.
The notes pay an annual coupon rate of 1.125% and mature on 21 April 2026.
Lenders to the notes are as follows:
- Banca IMI SPA
- Banco de Sabadell SA
- BNP Paribas
- Caixabank SA
- Citigroup Global Markets Ltd
- HSBC Bank Plc
- Merrill Lynch International
- Mizuho International Plc
- The Royal Bank of Scotland Plc
U.S-based computer hardware manufacturer Western Digital Corp. announced its planned issuance of $5.2bn worth of bonds. Proceeds from the issuance would primarily be utilized for the acquisition of SanDisk Corp., strengthen the company’s balance sheet and repay debt.
The company intends to offer $1.875bn senior secured notes due 2023 paying 7.375 % and $3.35bn unsecured senior notes due 2024 paying a coupon of 10.50%.
The offer is likely to close around 13 April 2016, subject to certain customary conditions.
The proposed merger between the two companies moved a step ahead after more than 90% shareholders of both the companies voted in favor of the deal on 15 March 2016.
According to Bloomberg, Western Digital had asked lenders this week for a proposed $18bn leveraged loan issuance to finance its acquisition of SanDisk, with banks showing interest.
Argentina is finalizing it’s return to capital markets with a proposed $15bn bond issuance, the largest by a developing nation since Mexico’s $20bn issue in 1996.
Proceeds would be firstly be utilized towards paying certain creditors in relation to its default on debt in 2001, with further issuances to focus on fiscal spending and towards boosting reserves.
However, investors are speculating on the interest rate that would be offered on the debt, considering the nation’s history of defaults over the last 200 years.
The issuance would be contingent upon approval from the congress and would commence next month, according to Finance Secretary Luis Caputo.
The proposal comes on the backdrop of Argentina’s $4.6bn settlement agreement with certain creditors in relation the nation’s default on debt in 2001. Certain creditors, including Paul Singer’s Elliot Management, refused to restructure the nation’s debt when it defaulted during 2001.
Talks with HSBC, Citi and JP Morgan have begun in London to arrange the sale.