Faurecia's €300 Million Bond Upsize Reduces Refinancing Risk

This report does not constitute a rating action. PARIS (S&P Global Ratings) Nov. 9, 2022--S&P Global Ratings today said that by upsizing its sustainability-linked senior unsecured notes due 2026 to €700 million, French auto supplier Faurecia SE (BB/Negative/--) has improved its short-term liquidity position and further reduced its near-to-medium-term refinancing risk. Our rating on Faurecia and our 'BB' issue rating and '3' recovery rating on the notes are unaffected. The company upsized its notes by €300 million and will use the proceeds to further repay part of its short-term bridge debt. We estimate that after this transaction, about €900 million of the company's bridge-to-bond facility will remain outstanding, plus €100 million under the bridge-to-equity facility. The upsize will enable Faurecia

...PARIS (S&P Global Ratings) Nov. 9, 2022--S&P Global Ratings today said that by upsizing its sustainability-linked senior unsecured notes due 2026 to 700 million, French auto supplier Faurecia SE (##/Negative/--) has improved its short-term liquidity position and further reduced its near-to-medium-term refinancing risk. Our rating on Faurecia and our '##' issue rating and '3' recovery rating on the notes are unaffected. The company upsized its notes by 300 million and will use the proceeds to further repay part of its short-term bridge debt. We estimate that after this transaction, about 900 million of the company's bridge-to-bond facility will remain outstanding, plus 100 million under the bridge-to- equity facility. The upsize will enable Faurecia to reduce the tranches due in August 2023 to about 500 million. The 500 million balance of the bridge-to-bond facility will then be due in 2024....

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