保乐力加拟首发混合债并对47亿欧元高级债发起上限要约，以负面前景下保投资级评级

Pernod Ricardis planning the sale of a debut hybrid bond alongside a tender for some of its outstanding senior debt, as the company looks to tackle upcoming maturities with its credit ratings on negative outlook.

The French spirits maker is holding investor calls for the two-part benchmark-sized euro hybrid with the perpetual notes first callable after 5.25 years and eight years, according to a person familiar with the matter who asked not to be identified.

Pernod concurrently announced a capped tender offer across seven senior euro-denominated bonds totaling €4.7 billion, with maturities ranging from September 2027 to November 2032, the person said.

The potential sale comes during a febrile period for French sovereign debt. The extra yield investors demand to hold French 10-year bonds over safer German debt rose to 150 basis points on Tuesday, a closely watched level last reached on October 5, after touching 159 basis points earlier this month.

France has been grappling with cost-of-living protests, though unrest largely subsided after tougher security measures were introduced following violence, vandalism and looting over the weekend.

Pernod made roughly 30% of its revenue from European sales in the year to August. While it does not disclose figures for France alone, the country accounted for about 5% of net sales in 2024, according to data compiled by Bloomberg.

Read more: Pernod Ricard Sales Decline Softened by Strength in India

A spokesperson for Pernod didn’t immediately respond to a request for comment.

The owner of brands including Absolut vodka, Beefeater London gin, Jameson whisky and Havana Club rum follows fellow alcohol producer Remy Cointreau in making its hybrid bond debut. Remy used the more expensive form of borrowing to help preserve its investment-grade rating.

Hybrid bonds combine features of debt and equity and, while typically more expensive than senior borrowing, can help bolster balance sheets because rating firms give them partial equity treatment.

For Pernod, that comes with leverage already firmly in focus. Its net debt-to-Ebitda ratio rose to 3.7 times following softer earnings, prompting Deputy Chief Financial Officer Mauve Croizat to tell investors in August that debt would be “one of my key points of attention.” Pernod aims to bring the ratio back below three times by fiscal 2029.

The company is rated Baa1 by Moody’s Ratings and BBB+ by S&P Global Ratings, with both carrying negative outlooks. The proposed hybrids are expected to be rated Baa3 and BBB-, respectively.

While they are more expensive than senior debt, the additional spread on hybrid bonds over senior debt stands at just 61 basis points, near record lows and compared with a long-term average of more than 120 basis points, according to ICE bond indexes. Hybrid bond sales in dollars, euro and sterling have already reached an annual record this year, at more than $96 billion, according to data compiled by Bloomberg.

Citigroup, ING, Natixis and Société Générale are acting as global coordinators, alongside Barclays, BNP Paribas, Credit Agricole CIB and HSBC as active bookrunners.

Pernod shares rose 4.9% on Tuesday, gaining alongside peer Diageo after LVMH’s alcohol unit beat expectations, even as weakness in China weighed on LVMH and the broader luxury sector.

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This story was produced with the assistance of Bloomberg Automation