Sodexo issues 1.1 billion euro in bonds

Sodexo has completed today a 1.1 billion euro bond issuance structured in two tranches: 600 million euro maturing in 7.5 years and another tranche for 500 million euro maturing in 12 years. The transaction was significantly oversubscribed and mainly placed with European investors.

The average interest rate on the borrowing is 2.1, with a 1.75 coupon on the 7.5-year tranche and a 2.5 coupon on the 12-year portion. It should be noted that Standard & Poor’s raised Sodexo’s rating from BBB+ to A- in February 2014.

This issuance follows the 1.1 billion U.S. dollar private placement transaction (USPP) in March 2014 (with maturities at 5, 7, 10, 12 and 15 years and at an average rate of 3.8).

These transactions allow Sodexo to:

• in particular, refinance the euro bonds maturing in March 2014 and January 2015;
• significantly extend the maturity of its borrowings; and progressively reduce the cost of financial borrowings.