Bertelsmann Successfully Launches New Benchmark Eurobond

Bertelsmann AG has successfully launched a new €500 million benchmark Eurobond on the capital market. The bond has a maturity of ten years and pays a coupon of 3.625 percent. The re-offer price is 99.391 percent. By issuing the bond, Bertelsmann takes advantage of the current low interest rates; the company will use the proceeds to repay existing bank loans.

The transaction was very well received by investors and was closed within 36 hours after the issue was announced. The bond was placed with more than 130 institutional investors from over 15 countries.

The benchmark bond is issued under Bertelsmann’s existing Debt Issuance Program and will be traded on the Luxembourg stock exchange. Bertelsmann is rated investment grade by Standard & Poor’s and Moody’s (BBB+ and Baa1 respectively), both with stable outlook. Commerzbank, HSBC and SG Corporate & Investment Banking are joint bookrunners for this issue. The Co-Lead group includes ABN Amro and LBBW.

Bertelsmann now has two large Eurobonds on the capital market that allow for liquid investments in Europe’s biggest media company.

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