PPR SA, the owner of luxury brands including Gucci and Yves Saint Laurent, sold its first bonds in almost two years.
PPR added 250 million euros to its 3.75 percent bonds due in April 2015, taking the total outstanding to 750 million euros, according to data compiled by Bloomberg. The bonds for the Paris-based company were priced to yield 190 basis points more than the benchmark swap rate, which compares with a spread of 135 when the bonds were first issued in March 2010.
The owner of the Puma sportswear brand has 1 billion euros of bonds coming due by the end of 2013, including 200 million euros maturing in November this year, Bloomberg data show. PPR’s existing 2015 bonds fell 0.11 cents on the euro to 102.40, the lowest since Jan. 3, Bloomberg Bond Trader prices show.
“PPR’s tap appears to fall into the pattern of treasurers remaining defensively positioned given the uncertain macroeconomic outlook and concern over bank loan availability,” said Duncan Warwick-Champion, an analyst at European Credit Management Ltd., the London-based asset manager owned by Wells Fargo & Co. “We will see a number of companies refinancing debt well ahead of scheduled maturities.”
Banca IMI SpA, Credit Agricole SA, Commerzbank AG, Natixis and Societe Generale SA managed the sale for PPR, which is rated BBB- by Standard & Poor’s.
PPR spokesman Paul Michon in Paris said the sale was “a normal operation in the framework of PPR’s group debt management.”