Saint-Gobain raises GBP 600 million in bond issue

The French glass and building materials group Saint-Gobain SA raised GBP 600 million (USD 1.15 billion/EUR 896.1 million) in a GBP-denominated bond issue, the company said on 3 November 2006.
The iss…

The French glass and building materials group Saint-Gobain SA raised GBP 600 million (USD 1.15 billion/EUR 896.1 million) in a GBP-denominated bond issue, the company said on 3 November 2006. The issue was divided in two tranches of GBP 300 million (USD 572.6 million/EUR 448 million) each. The first tranche has a 10-year maturity period and carries an annual coupon of 5.625% while the second tranche has an 18-year maturity period and carries an annual coupon of 5.625% a year as well. The dual-tranche issue was well received by investors and demand totalled GBP 2.8 billion (USD 5.3 million/EUR 4.2 million), the French company said. The company allocated 44% of its 10-year bond tranche and 46% of its 18-year bond tranche to asset managers. Various insurance companies, pension funds and banks received the larger part of the rest. Barclays Capital, HSBC Bank and The Royal Bank of Scotland were lead managers for the bond issue. Saint-Gobain will use the proceeds from the issue to refinance part of its debt, as well as to extend the company“s average debt maturity. Saint-Gobain“s long-term senior debt is rated BBB+ by the International credit rating agency Standard & Poor“s (S&P) and Baa1 by the Moody“s credit rating agency.