Amadeus Said to Plan First Bond Sale Since 2011 as Costs DeclineKatie Linsell
Amadeus IT Holding SA, a Spanish operator of travel booking systems, is planning its first bond sale since 2011 as borrowing costs approach record lows.
The company hired banks to arrange a call with investors today, according to a person familiar with the matter, who asked not to be identified because they’re not authorized to speak publicly. Yields on investment-grade bonds issued by companies in Spain and other parts of Europe’s periphery fell to 1.13 percent, one basis point from a record low reached earlier this month, Bank of America Merrill Lynch index data show.
Amadeus is coming to the market as Spanish government bonds rally, with yields on the 10-year note falling below 2 percent for the first time amid speculation the European Central Bank will buy sovereign debt to stimulate the region’s economy. Amadeus plans to raise as much as 1.5 billion euros ($1.9 billion) through its Amadeus Finance BV unit’s debt issuance program, the Madrid-based company said in a regulatory filing today.
Proceeds from a sale would be used to replace outstanding debt, Amadeus said in an e-mailed statement. The company has 750 million euros of 4.875 percent bonds maturing in July 2016, according to data compiled by Bloomberg.