MILAN, March 11 (Reuters) - Stellantis (STLA) said
on Wednesday it has priced a multi-tranche 5 billion euro ($5.8
billion) equivalent hybrid bond offering, tapping capital
markets weeks after it announced multi-billion charges in a
major reset of its electric vehicle strategy.
The automaker announced last month it was taking 22.2 billion
euros in impairments after rolling back its electric-vehicle
(EV) push, a shift CEO Antonio Filosa attributed to
overestimating how quickly customers would switch to cleaner
driving.
As part of the move, Stellantis (STLA) announced it would issue up
to 5 billion euros in non-convertible subordinated perpetual
hybrid bonds to help it preserve a strong balance sheet and
available liquidity.
Stellantis (STLA) said on Wednesday the bond offering - which was
executed on Tuesday - consisted of three tranches: 2.2 billion
euros in perpetual fixed-rate resettable notes with a 5.25-year
non-call period and a 6.25% coupon; 1.8 billion in perpetual
notes with an 8-year non-call period and a 6.875% coupon; 865
million pounds ($1.16 billion) in perpetual notes with a
6.5-year non-call period initially paying an 8.25% coupon.
"This issuance will further strengthen Stellantis' (STLA) capital
structure and liquidity position," the Jeep-to-Peugeot maker
said in a statement.
The notes settlement is expected on March 16.
The automaker, whose brands also include Ram, Chrysler, Fiat and
Citroen, is shifting to put greater emphasis on hybrid and
internal combustion models - versus former CEO Carlos Tavares'
EV-centred strategy - arguing demand for fully electric vehicles
has lagged earlier projections, particularly in the United
States.
Stellantis (STLA) will present its new long-term business plan on
May 21.
($1 = 0.8595 euros)
($1 = 0.7441 pounds)
(Reporting by Giulio Piovaccari
Editing by Keith Weir)
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