Packaging firm SIG has announced that it has completed the pricing of notes worth €1 billion through its subsidiary SIG Combibloc PurchaseCo S.à r.l.
The offering includes €450 million senior unsecured notes due 2023 at a coupon of 1.875% per annum, and €550 million senior unsecured notes due 2025 at a coupon of 2.125% per annum.
It has also entered into new sustainability-linked loan facilities, comprising a €550 million term loan facility and a €300 million revolving credit facility, priced at Euribor+100bps.
The loan facilities were pre-placed with a broad range of relationship and investment banks in March 2020, the company added.
The net proceeds from the notes and the facilities will be used to fully refinance SIG’s existing €1.2 billion Term Loan A, €350 million Term Loan B and €300 million revolving credit facility, the company said.
'Resilient Business Model'
Commenting on the move, CFO of SIG, Samuel Sigrist, said, "The issuance will allow us to benefit from a fully unsecured capital structure, while extending our debt maturity profile. The attractive pricing demonstrates investor recognition of our resilient business model, proven growth strategy, and leading sustainability profile.
"The loan facilities which are part of this re-financing are linked to our ambitious sustainability targets, including an ongoing reduction in greenhouse gas emissions and further increases in our score from EcoVadis, where we already have a Platinum rating."
The company expects to issue the notes on 18 June 2020, it said.
SIG has corporate and bond ratings of BBB- from S&P and Ba2 from Moody’s.
It has an AA ESG rating by MSCI, an 18.8 (low risk) score by Sustainalytics, and a Platinum CSR rating by EcoVadis.