Glencore refinances and extends ahead of Burckhardt debut

Credit: REUTERS/Arnd Wiegmann

Glencore part-refinanced an upcoming maturity on Tuesday with a SFr225m (US$247m) 6.5-year deal, extending its Swiss franc curve by 18 months.

LONDON, Sept 18 (IFR) - Glencore part-refinanced an upcoming maturity on Tuesday with a SFr225m (US$247m) 6.5-year deal, extending its Swiss franc curve by 18 months.

IPTs were sent out on Tuesday morning at mid-swaps plus 140bp–145bp, with books opening for a SFr150m minimum at the same level, finally pricing SFr225m at the tight end, equivalent to Swiss governments plus 150.4bp, or a 0.905% yield.

The level was broadly flat to Glencore's extrapolated Swiss franc curve, as well as to its euro curve, and came inside the company's US dollar curve, when adjusted for the cross-currency basis swap.

It partly refinances an upcoming SFr500m 1.25% issue due in December this year.

Unusually for the Swiss market, the bonds feature a three-month par call.

They were issued by Glencore Capital Finance DAC, guaranteed by Glencore plc, Glencore International AG and Glencore (Schweiz) AG.

Credit Suisse and UBS were leads.

Looking forward, Burckhardt Compression Holding, a Swiss company making reciprocating compressor systems, is holding a fixed income investor call on Monday September 21 via ZKB ahead of a potential senior unsecured issue.

Proceeds from any resulting bond issue will be used to finance the purchase of the remaining 40% of shares in Shenyang Yuanda Compressor, a Chinese company in which it took a 60% interest in March 2016.

(This story will appear in the September 19 issue of IFR Magazine)

((jon.penner@thomsonreuters.com; +44 207 542 7348; Reuters Messaging: jon.penner.thomsonreuters.com@reuters.net))

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Reuters

Reuters, the news and media division of Thomson Reuters, is the world’s largest international multimedia news provider reaching more than one billion people every day. Reuters provides trusted business, financial, national, and international news to professionals via Thomson Reuters desktops, the world's media organizations, and directly to consumers at Reuters.com and via Reuters TV.

Learn More