AMCO issues senior unsecured bond
AMCO SUCCESSFULLY ISSUES A €500M 4-YEAR
SENIOR UNSECURED BOND
- The book was over 3.7 times oversubscribed, confirming the strong interest for AMCO by qualified institutional investors, particularly non-domestic ones
- The new issue has been announced in conjunction with a liability management exercise related to the repurchase of senior unsecured notes due 17 July 2023, with the aim to lengthen the debt maturity profile
Milan, 30 January 2023. AMCO has successfully issued a new senior unsecured transaction for a notional amount of €500 million with a 4-year maturity to 6 February 2027. The new bond issue has been announced in conjunction with a liability management exercise in relation to the senior unsecured notes due 17 July 2023 (more details are included in the related press release), with the aim to lengthen AMCO’s debt maturity profile.
The 4-year bond has a fixed annual coupon of 4.625% and an issue price of 99.625%. Settlement is expected to occur on 6 February 2023 and the notes will be listed on Luxembourg Stock Exchange’s Regulated Market.
The bond, placed to institutional investors, has been issued under AMCO’s €6bn EMTN Programme renewed on 16 September 2022 and supplemented on 23 January 2023. The expected issue rating is BBB from both Standard & Poor’s and Fitch.
The new bond has an implicit premium of 125 basis points over reference BTP. With a strong demand from institutional investors for an amount of over €1.85 billion (oversubscription equal to 3.7 times) final pricing is 35 basis points tighter versus IPTs (Initial Price Talks).
Allocations to non-domestic investors exceeded three quarters of the issued amount, with the large majority of the allocations going to long-term investors.Equita, Mediobanca, Morgan Stanley, Société Générale and UniCredit acted as Joint Lead Managers. Clifford Chance and White & Case acted as legal advisors to AMCO and to the banks respectively.
