Japan’s Nissan Motor has raised $4.52 billion in U.S. dollar- and euro-denominated senior unsecured bonds, according to a term sheet reviewed by Reuters on Friday, with the proceeds intended to refinance existing debt.
The issuance comes about a week after Reuters reported that Nissan has asked some suppliers to allow it to delay payments to free up short-term funds, highlighting its scramble to boost cash.
According to the term sheet, $3 billion was raised through three U.S. dollar tranches with 5-, 7-, and 10-year maturities, while a further 1.3 billion euros ($1.52 billion) were issued in four- and eight-year tranches.
The U.S. dollar 5-year bonds were priced at 355 basis points (bps) over Treasuries, the 7-year at 360 bps, and the 10-year at 376 bps.
The coupons are 7.5% for the five-year tranche, 7.75% for the seven-year tranche and 8.125% for the 10-year tranche, the term sheet showed.
Citi, Bank of America and HSBC were joint book runners for the bond sales, according to the term sheet.
The automaker faces around 700 billion yen ($4.76 billion) in debt maturing this financial year and has been downgraded to “junk” status by all three major credit-rating agencies.
