(Bloomberg) -- DSV A/S has raised €5 billion ($5.4 billion) in funding for the acquisition of DB Schenker in a multi-tranche bond transaction, matching the biggest corporate deal in Europe so far this year.
The Danish transport company sold a six-part bond deal with maturities ranging from two to 10 years, according to a person familiar with the matter. The deal pulled in investor orders in excess of €29 billion, said the person, who asked not to be identified because they’re not authorized to speak publicly about the matter.
Chief Financial Officer Michael Ebbe told Bloomberg last week that the company would finance the €14.3 billion purchase of DB Schenker through a combination of shares, bonds and bank debt. DSV raised around €5 billion in equity earlier this month, leaving about €6 billion to €9 billion needed from bonds and loans, he said.
The company moved pricing tighter for all tranches, setting spreads at 55 basis points over mid swaps for one of the shortest tranches and a premium of 105 basis-points for the longest maturity, the person said. The notes are expected to receive a A3/A- rating.
The size of DSV’s deal is on par with Siemens AG raising €5 billion from a four-part bond sale in February. In another major European issuance earlier this year, Danish obesity drug maker Novo Nordisk A/S priced €4.65 billion in a four-part transaction in May.
Conditions in Europe’s bond market have been buoyant for most of 2024, with investment-grade companies raising around €336 billion year-to-date, 35% ahead of the same point in 2023, according to data compiled by Bloomberg.
Deals have been met with strong investor demand, partly driven by inflows into the asset class. Companies have been eager to come to the market ahead of potential volatility stemming from the US labor data later this week and US elections next week.
BNP Paribas SA, Danske Bank A/S, HSBC Holdings Plc and Nordea Bank Abp were the lead managers of the transaction.
(Updates with final pricing details throughout.)
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