Rémy Cointreau places €250 million hybrid bonds at 6.75% to deleverage
The cognac producer completed the placement of its first perpetual super-subordinated hybrid bond issuance, an operation designed to support its deleveraging trajectory ahead of the first expected effects of its transformation plan.
A €250 million issuance at 6.75% rate
Rémy Cointreau placed €250 million in perpetual super-subordinated hybrid bonds, carrying a fixed rate of 6.75%. The group will have at its discretion a first early redemption option from July 7, 2031 to October 7, 2031.
The net proceeds from the issuance will be used for general purposes, including the refinancing of existing debt. The order book reached more than €695 million, representing an oversubscription rate of 2.7 times. Settlement and delivery of the bonds is scheduled for October 7, 2026.
Accounting treatment as equity
Based on accounting principles applicable to date, Rémy Cointreau will recognize these bonds in their entirety as equity. They will also benefit from an equity treatment of 50% by Moody's.
According to the group, this issuance should accelerate its deleveraging trajectory and increase its financial flexibility, ahead of the materialization of the first expected benefits from its transformation plan, while helping to strengthen its credit profile and investment grade rating. The bonds are expected to be admitted to trading on the Euro MTF market of the Luxembourg Stock Exchange from the issuance date. BNP Paribas and Société Générale have been appointed as global coordinators and joint bookrunners, with Crédit Agricole CIB and HSBC acting as joint bookrunners.
