Faurecia successfully prices €500 million of 3.125% senior notes due 2026 to complete financing of Clarion
The issuance of these Notes is intended to refinance the bridge loan of €500 million, which was drawn to finance the acquisition of Clarion Co, Ltd, and related expenses and transaction costs.
The strategic acquisition of Clarion, complementary in terms of technology offer, geographic presence and customer portfolio with Faurecia’s current business, will allow the Group to become a leading player in cockpit electronics and systems integration.
On March 1, Faurecia announced that 95.28% of Clarion shares were tendered during the offer period. The settlement took place on March 7 and the relevant squeeze-out procedure to acquire all the remaining shares of Clarion will be finalized by the end of March.
Together with the €700m Schuldscheidarlehen issued in December 2018 with an average margin below 1.80%, these Notes contribute to fully finance the acquisition of Clarion, at an average interest rate of around 2.5% including hedging costs.
Faurecia’s long-term debt has an average cost of financing below 3% and an average maturity of above 5.5 years, with no material debt repayment before 2022.
An application has been made to list the Notes on the Irish Stock Exchange (Global Exchange Market).
The settlement of the Notes is expected to occur on March 27, 2019.