Zenith's £475M green bond deal lands in line with talk; terms

U.K. vehicle-leasing group Zenith Automotive Holdings Ltd. on Jan. 20 priced its £475 million offering of 5.5-year secured green notes at 6.5%, in line with price talk at 6.5% area (+/-0.125%). HSBC (B&D) and Barclays were joint global coordinators and physical bookrunners, while Goldman Sachs and NatWest Markets were joint bookrunners. Talk came in line with initial price thoughts of 6.5% area.

Proceeds are initially earmarked to refinance existing debt, with an amount equal to the proceeds of the green-labeled bonds set to support the company's target to transition its customers' car fleets to battery-electric vehicles.

S&P Global Ratings and Moody's assigned corporate and secured debt ratings of B+ and B1, respectively.

The bonds are non-call two-year and feature an equity claw of up to 40% at 106.5 during the non-call period, and a 10% special call at 103 per year.

Zenith is majority-owned by Bridgepoint and operates three divisions including corporate, commercial and consumer. The firm's corporate division accounts for the majority of the group's assets and serves blue-chip clients including Sainsbury's, BP and Royal Mail.

Terms: