MAN successfully places corporate bonds
The total amounts issued are €1 billion for the four-year tranche and €500 million for the seven-year tranche. The bonds carry coupons of 5.375% and 7.25% respectively and were placed long-term with investors at credit spreads of 305 bps and 425 bps respectively over mid-swaps. The value date is May 20, 2009. The four-year bond will thus be redeemed on May 20, 2013 and the seven-year bond on May 20, 2016.
Despite the difficult situation at present, MAN succeeded in placing the issue on the financial markets within just one and a half hours. The bonds were significantly oversubscribed, with order books at €7.3 billion.
Credit Suisse, Goldman Sachs, UniCredit and Société Générale were lead managers of the issue. The MAN Group enjoys long-term corporate ratings of A- from Standard & Poor's and A3 from Moody's, making it one of the industrial players with the best credit ratings in the German stock index, the DAX.
"The bond issue is a long-term solution with high planning security that enables us to repay our acquisition financing from March 2009 within just two months," says Frank H. Lutz, MAN's Senior Vice President, Finance. "This makes our financing structure more diversified and illustrates the confidence that the financial markets have in our company."
The MAN Group is one of Europe's leading industrial players in transport-related engineering, with revenue of approximately €15 billion in 2008. As a supplier of trucks, buses, diesel engines, turbo machinery and special gear systems, MAN employs approximately 51,300 people worldwide. Its business areas hold leading positions in their respective markets. MAN AG, Munich, is listed in the DAX (German Stock Index), which comprises Germany's thirty leading stock corporations