Ciech today placed €245 million of seven-year (non-call three) secured notes via Credit Suisse (B&D) and Barclays. The bonds came at 9.5%, the tight end of 9.5-9.75% guidance. The bonds were also upsized by €20 million, from an originally intended €225 million. Proceeds from the notes – along with proceeds from a local-currency bond issue due 2015 – will be used to repay in full the company’s PLN759.3 million (€184 million) senior credit facilities, its PLN300 million (€73 million) notes due Dec 2012, and a €63 million credit facility provided by Commerzbank and KfW. Ciech becomes the second issuer from Poland to tap the international high-yield market this year, the other being Polkomtel, and only the seventh Polish borrower since LCD began tracking European high-yield in 2006. Terms:
| Issuer | Ciech Group Financing | |
| Ratings | B/B2 | |
| Amount | €245 million | |
| Issue | Secured notes | |
| Coupon | 9.5% | |
| Price | 100 | |
| Yield | 9.5% | |
| Spread | B+858 | |
| Floating eq. | E+820 | |
| Maturity | Nov. 30, 2019 | |
| Call | nc3 | |
| Trade | Nov. 21, 1012 | |
| Settle | Nov. 28, 2012 (T+5) | |
| Books | CS (B&D), Barclays | |
| Px talk | 9.5-9.75% | |
| Notes | Upsized by €20M |