Global law firm White & Case LLP has advised HSBC, Deutsche Bank, JP Morgan and Morgan Stanley as joint bookrunners on the dual-tranche issuance by Total S.A. of €2.5 billion hybrid notes.
The bonds, issued on October 6, 2016, are listed on the regulated market of Euronext Paris. The first tranche comprised €1 billion undated non-call 6.6-year deeply subordinated fixed rate resettable notes, and the second comprised €1.5 billion undated non-call ten-year deeply subordinated fixed rate resettable notes. The 6.6-year non-call tranche pays an annual coupon of 2.708 percent, and the ten-year non-call tranche pays an annual coupon of 3.369 percent, each subject to a periodic interest rate step-up.
The securities will rank junior to all senior debt and, in accordance with IFRS, will be recognized as 100 percent equity. They will be assigned 50 percent ‘intermediate' equity content by S&P and Moody's rating agencies.
The issues follow Total's earlier issue in May 2016 of €1.75 billion undated non-call six-year deeply subordinated fixed rate resettable notes on which White & Case also advised the bookrunners. This is Total's third foray into the corporate hybrid market, following its debut dual-tranche €5 billion issuances in February 2015.
The White & Case team in Paris which advised on the transaction was led by partners Cenzi Gargaro and Philippe Herbelin, with support from associates Grégoire Karila and Petya Georgieva. Partner Alexandre Ippolito, with support from associates Charline Schmit and Guillaume Keusch, advised on tax matters. The issuer was advised by its internal legal team, headed by Lee Young.
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