El Corte Inglés’s €600 Million Bond Offering

Cuatrecasas advised El Corte Inglés on the offering.

El Corte Inglés placed senior bonds worth €600 million for a term of three and a half years. Following the heavy demand, four times greater than the offer, the company raised its initial issue from €400 to €600 million, and the bonds will pay an annual coupon of 3.625%.

Investors include the European Central Bank, which has acquired a position of €200 million, after considering the distribution chain eligible for its purchase program.

The issue has been rated investment grade BBB- by Standard & Poor’s, Ba1 by Moody’s and BB+ by Fitch.

Bank of America Merrill Lynch was the global coordinator and underwriter for the issue, with El Corte Inglés’ main banks participating as active bookrunners and bookrunners (BBVA, Banco de Sabadell, Banco de Santander, Bankia, BNP Paribas, CaixaBank, Goldman Sachs, Crédit Agricole CIB, Intesa Sanpaolo, JP Morgan, Société Générale and UniCredit Bank).

El Corte Inglés will use the funds obtained with the placement to strengthen its liquidity, and to manage general corporate needs including repaying debt.

El Corte Ingles SA retails consumer goods in Spain. The Company sells a wide range of merchandise including men, women, and children’s apparel, accessories, cosmetics, home furnishings, electronics, groceries, appliances, and sporting goods.

The Cuatrecasas team that advised El Corte Inglés included Miguel Cruz (Picture) and Nuria Burillo.

Involved fees earner: Miguel Cruz Ropero – Cuatrecasas;

Law Firms: Cuatrecasas;

Clients: El Corte Inglés;