Bulletin: French Auto Components Supplier Faurecia's Bond Tap Is In Line With Strategy

PARIS (S&P Global Ratings) Oct. 28, 2019--S&P Global Ratings said today that it expects the proposed €250 million tap of the €500 million senior unsecured notes issued by France-based Faurecia SE (BB+/Stable/--) will have only a limited impact on the group's credit metrics. Our rating on Faurecia's unsecured notes, including the proposed tap, is unchanged at 'BB+'. We understand that Faurecia, a leading global automotive components manufacturer, will use the proceeds to finance its acquisition of the remaining 50% of its joint venture--SAS Automotive Systems--from Continental. The final size of the issuance remains subject to market conditions and we understand the tap will be governed by the same indenture as that for Faurecia's outstanding senior unsecured notes. Faurecia will buy

...October 28, 2019 PARIS (S&P Global Ratings) Oct. 28, 2019--S&P Global Ratings said today that it expects the proposed 250 million tap of the 500 million senior unsecured notes issued by France-based Faurecia SE (##+/Stable/--) will have only a limited impact on the group's credit metrics. Our rating on Faurecia's unsecured notes, including the proposed tap, is unchanged at '##+'. We understand that Faurecia, a leading global automotive components manufacturer, will use the proceeds to finance its acquisition of the remaining 50% of its joint venture--SAS Automotive Systems--from Continental. The final size of the issuance remains subject to market conditions and we understand the tap will be governed by the same indenture as that for Faurecia's outstanding senior unsecured notes. Faurecia will buy SAS Automotive for a total consideration of 225 million, which is in line with the amount we assume the group would spend for bolt-on acquisitions every year in our base-case scenario. We still...

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