LONDON, June 12 (IFR) - Intrum Justitia is out with a jumbo
€3bn-equivalent trade, set to be this year's largest in the
European high-yield market.
Though there were two M&A issues last week, Intrum Justitia,
with its size and expected Ba2/BB+/BB ratings, appears to be the
kind of new issue investors have been crying out.
Most of the proceeds will refinance existing debt for the
Swedish credit management services company's merger with
Norwegian peer Lindorff.
"It's exactly what the market wants," said a lead banker.
"It's new supply, M&A related, and in that rating spectrum
where you're not taking on a lot of credit risk."
The borrower is planning three euro tranches: a minimum
€300m 5NC1 FRN, a minimum €500m 5NC2 fixed, and a minimum €500m
7NC3 fixed. It is also looking to sell a minimum
€300m-equivalent 5NC1 FRN in Swedish kronor.
The biggest deal so far this year was from Quintiles IMS,
which raised €1.425bn through an 8NC3 senior note in February.
Of the proceeds from Intrum Justitia's bond, €2.4bn will
repay debt taken out in relation to the merger.
"That's why I think this deal is going to have a really nice
technical around it. More than two thirds of the deal is in the
hands of people who know about it, so it is rolling in a lot of
existing money," said the banker.
Goldman Sachs (B&D), JP Morgan, Morgan Stanley, Danske Bank,
Deutsche Bank, DNB Markets, Nordea, Nykredit, Swedbank and UBS
are joint bookrunners.
(Reporting by Yoruk Bahceli, Editing by Alex Chambers and