LONDON, Aug 29 (IFR) - France’s Schneider Electric on Thursday opened books on a EUR600m eight-year bond to partially refinance its acquisition of UK engineer Invensys.
The company, rated A3/A-, opened books shortly after 0730GMT, setting initial price thought at mid-swaps plus 70-75bp for pricing later in the day via BNP Paribas, HSBC, Natixis and Societe Generale.
Credit Agricole and Santander have been also mandated as passive bookrunners for the senior unsecured RegS offering.
On July 31 Schneider agreed to buy Invensys for GBP3.4bn to strengthen its high-margin industrial automation business and win more custom in the fast-growing energy sector.
The deal, Schneider’s biggest since its USD6.1bn purchase of American Power Conversion Corp in 2006, will combine Invensys’s automation software that helps run power stations, oil refineries and chemical plants with Schneider’s automation products for the car, aerospace, food and beverage industries.
Schneider has also put in place a GBP2.56bn bridge loan to finance the deal, initially provided by Bank of America, BNP Paribas and Deutsche Bank. (Reporting By Josie Cox; editing by Sudip Roy)