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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.
–With assistance from Levent Kucukreisoglu in London.
To contact the reporter on this story: Katie Linsell in Madrid at firstname.lastname@example.org To contact the editors responsible for this story: Shelley Smith at email@example.com Jennifer Joan Lee, Abigail Moses