Schneider Electric Plans Two-Part Bond Issue, Tender Offer

9th Jul 2010 08:53

LONDON (Dow Jones)--French electrical equipment maker Schneider Electric SA (SU.FR) is planning six- and ten-year fixed-rate bond issues along with an offer to buy back its 2013 bond, one of the banks running the deals said Friday. The company announced the new issue and buyback in order to refinance its notes maturing in August 2010, extend its maturity profile and optimize its financial charges, the bank said. The six-year bond is to have a size of EUR300 million. Deutsche Bank AG, HSBC Holdings PLC and Societe Generale SA are bookrunners of the deal. The ten-year tranche will be EUR500 million, with Bank of American Merrill Lynch, Credit Agricole SA, Deutsche Bank and Societe Generale as managers. The bonds are expected to price later Friday, subject to market conditions. In addition to the two new issues, the company plans to make an offer to buy back its EUR750 million, 6.75%, July 2013 bond for a maximum amount of EUR300 million, at 114.05% of par. The offer expires July 16 at 1400 GMT. Schneider Electric is rated A3 by Moody's Investor Services Inc. -By Art Patnaude, Dow Jones Newswires; +44 (0) 207 842 9259; [email protected] (END) Dow Jones Newswires July 09, 2010 03:53 ET (07:53 GMT)