Siemens $7.5 billion seven tranche bond issue

Overview:

• Siemens issued a $7.5 billion Reg S/Rule 144A bond in seven tranches.
• Some proceeds from the bond will be used to refinance debt borrowed for Siemens $4.5 billion acquisition of Mentor Graphics.
• Five of the tranches were fixed rate: $1.1 billion 2.2% 2020 notes, $1 billion 2.7% 2022, $1 billion 3.125% 2024 notes, $1.25 billion 3.40% 2027 notes, and $1.5 billion 4.2% 2047 notes. 
• Two tranches were floating rate: $800 million three month US dollar Libor plus 34bps 2020 notes and $850 million three month US dollar Libor plus 61bps 2022 notes. 
• Siemens secured good interest rates on all tranches and its issue was timed in anticipation of the US Federal Reserve hiking rates.  
• Siemens issued its largest ever $7.75 billion in 2015, and sold a further $6 billion last year. 
• BNP Paribas, Citigroup, Deutsche Bank, HSBC, JP Morgan, and RBS were bookrunners on the deal. 

Ben Naylor - Regional editor