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Hexagon to sell bonds to refinance Intergraph loans

Sweden: Hexagon will sell bonds to refinance some of the loans used to fund the acquisition of Intergraph Corp. Hexagon plans to sell shares to raise USD 850 million, according to BusinessWeek report.

“Our plan is to issue bonds with tenors somewhere between three and seven years,” said Robert Belkic, group treasurer at Hexagon. The company’s lenders closed senior syndication of USD 2.13 billion of term loans on October 6, including a USD 375 million bond bridge facility. The timing of the bond issue will “depend on market conditions,” Belkic informed.

The bond bridge is available for a year and can be extended by another year, underwriters Credit Agricole CIB and SEB AB said in a statement. Hexagon also got EUR 750 million of five-year revolving credit and a EUR 250 million five-year term loan to refinance debt signed in June 2006.

Hexagon said that it agreed to buy Intergraph for USD 2.13 billion to add software that helps companies visualize complex data and design factories, ships and oil rigs.

Commerzbank AG, Danske Bank, DnB NOR Bank ASA, Svenska Handelsbanken AB, ING Groep NV, Nordea Bank AB, Swedbank AB, and BNP Paribas SA have joined the loans, according to the company’s statement.

Source: BusinessWeek