Acquisition of AKKA Technologies finalized by Adecco Group thanks to secured financing
The Adecco Group, the world's leading talent advisory and solutions company, has announced a series of debt issuances, including the placement of new notes and a hybrid bond. These issuances are designed primarily to manage and refinance existing debt, as well as support general corporate purposes.
Key details of these issuances are as follows:
The Adecco Group has placed two tranches of EUR 500 million fixed rate notes, maturing in 2028 and 2031. The 7-year note matures in 2028 and has a coupon of 0.125%, while the 10-year note matures in 2031 and has a coupon of 0.500%. These notes are expected to close in early 2022 and will be listed on the main market of the London Stock Exchange.
In addition, the Group has also placed a EUR 500 million subordinated fixed-to-reset rate hybrid bond, maturing in 2082. This hybrid bond has a first reset date in 2027. Barclays, BNP Paribas, and UBS were further mandated as Joint Bookrunners on the Hybrid Bond issuance, while J.P. Morgan and Société Générale were mandated as Joint Structuring Agents to the Issuer and the Guarantor.
The issuance of these notes and the hybrid bond is part of the EUR 3.5 billion EMTN Programme of the Adecco Group. The net proceeds from the new debt issuances will be used, in part, to fund the acquisition of AKKA Technologies, which is expected to close in early 2022.
The hybrid bond aligns with market trends where large, high-quality issuers tap the dated hybrid securities segment to obtain income comparable to high-yield bonds but with investment-grade fundamentals. This suggests that Adecco Group is leveraging structural features of hybrids for cost-effective financing with loss-absorbing capacity, which is attractive to investors seeking yield plus relative safety.
The overall market context suggests elevated issuance across bond curves, with governments and corporations increasing issuance to meet maturing debt obligations and finance operational needs.
For further information on the AKKA Technologies transaction, please click here. For press inquiries, contact [email protected] or 41 (0) 44 878 87 87. For investor relations, contact [email protected] or 41 (0)44 878 88 88.
The Adecco Group is headquartered in Zurich, Switzerland and listed on the SIX Swiss Exchange (ADEN).
- The future of work industry might see increased investments, as The Adecco Group, a leading talent advisory company, has issued new notes and a hybrid bond, raising EUR 3.5 billion, part of which will fund the acquisition of AKKA Technologies.
- In the realm of banking and insurance, the Adecco Group's issuance of a subordinated fixed-to-reset rate hybrid bond maturing in 2082 is noteworthy, aligning with market trends that see large issuers tapping the dated hybrid securities segment for cost-effective financing with loss-absorbing capacity.
- As businesses and governments worldwide look to finance operational needs and meet maturing debt obligations, real estate sectors could witness significant activity, with the overall market context suggesting elevated issuance across bond curves.
