OHL launches an eight-year Eurobond issue for 325 million euroat 5.50%

OHL has issued a 325 million euros senior notes in the Eurobond market, with maturity in 2023. The bonds will be issued at par to the Joint Global Coordinators and Joint Bookrunners of the Issue (Credit Suisse, Royal Bank of Scotland and UBS) and will bear interest at a rate of 5.50% per annum payable semi-annually. The bonds will be listed on the London Stock Exchange’s regulated market.

The Company expects to use the entire proceeds of the Issue towards the partial early redemption of the outstanding 425 million euro notes maturing in 2018 with a 8.750% coupon, thereby achieving a significant improvement in the financial costs of 325 basic points and improving the maturity of its long-term debt. The issue is expected to be closed and paid up on 31 March 2015.

The transaction is part of OHL Group’s financial policy to optimize costs and its recourse debt maturity profile in capital markets.

This is the sixth Eurobond issue launched by OHL after it joined the capital markets in 2007.