HeidelbergCement AG will launch a high-yield bond of more than EUR1bn (US$1.47bn) early next week as it continues to restructure its debt, banking sources said.
HeidelbergCement has not finalised the banks leading the issue, but is expected to appoint four bookrunners, two of which will play an active role, one banker said.
Deutsche Bank and Royal Bank of Scotland are expected to lead the deal and Bank of America Merrill Lynch is also expected to have a bookrunning position, several bankers said.
HeidelbergCement has just completed a successful EUR2.3bn equity issue as part of a wider EUR8.7bn debt restructuring after its business slumped amid the credit crunch.
HeidelbergCement is a ’fallen angel’ company after losing its investment-grade rating in October 2008. The company is now rated B-, B1 and B with Standard and Poor’s, Moody’s Investors Service and Fitch Ratings, respectively.
HeidelbergCement’s finance company 5.625% 2018 bonds are currently trading at 7.4 percent, but the company is expected to pay a premium over that level on the new high-yield bond