SKF’s new EUR 500 million bond closed today. The senior, unsecured bond matures on 2 December 2022 and carries a fixed coupon interest rate of 1.625%, an historically low rate for SKF. The proceeds of the issue will be used for the refinancing of existing debt through the buy-back of parts of two outstanding bonds, maturing in 2018 and 2019, with coupon rates of 3.875% and 1.875%, respectively.
Christian Johansson, Chief Financial Officer, says: “We are very pleased to have completed this transaction, which has achieved the lowest coupon rate ever for a public seven-year Eurobond for a Swedish corporate. It also extends our maturity profile moving forward.”
The buy-backs will have a one-time negative impact of approximately SEK 260 million on the Group’s financial net for Q4 2015. Financial net for Q4 2015 is now expected to be approximately SEK –500 million, compared to the Group’s previous guidance of SEK -300 million.
The new bond has been listed on the Official List of the Luxembourg Stock Exchange and admitted to trading on the Luxembourg Stock Exchange’s regulated market.
Citigroup, B of A Merrill Lynch, Deutsche Bank and SEB have acted as joint lead managers and Banca IMI has acted as co-manager.
