Breaking News
Investing Pro 0
New Year’s SALE: Up to 40% OFF InvestingPro+ CLAIM OFFER

Nissan Begins First Dollar Bond Sale Since 1999 Alliance

Stock Markets Sep 09, 2020 10:36PM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Bloomberg. Nissan Motor Co. vehicles, including Note e-Power, right, stand on display in a showroom at the company's headquarters in Yokohama, Japan, on Tuesday, July 28, 2020. Nissan is struggling to restore profitability and sales after the November 2018 arrest of its former Chairman Carlos Ghosn and because a lack of new models left it ill-prepared to face a downturn in global vehicle demand amid the coronavirus pandemic. Photographer: Akio Kon/Bloomberg
 
7211
-2.38%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
NSANY
-0.42%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
RNLSY
-4.00%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 

(Bloomberg) -- Nissan (OTC:NSANY) Motor Co. kicked off the sale of its first non-convertible dollar bonds since its corporate alliance began in 1999, as the Japanese carmaker tries to boost finances after its biggest loss in two decades.

The carmaker is doing a multi-tranche deal including three-year and 10-year notes, according to people familiar with the matter. The Yokohama-based company has already received financial backing from the state-controlled Development Bank of Japan Inc., according to local media reports over the weekend, and in July priced 70 billion yen ($659 million) of notes in its home market.

Nissan, which allied with Renault SA (OTC:RNLSY) in 1999 and later also with Mitsubishi Motors (OTC:MMTOF) Corp., is cutting jobs and capacity as the pandemic hits demand, while seeking to revive an aging lineup and improve margins at the same time. For the current fiscal year through March, Nissan is forecasting a 470 billion yen operating loss.

The automaker has been mired in turmoil since the 2018 arrest of former Chairman Carlos Ghosn. The company’s ratings have also suffered and S&P Global Ratings cut Nissan’s credit score to just one level above junk in July.

The three-year notes are being marketed at an initial price guidance of about 325 basis points over Treasuries, and 10-year bond at 437.5 to 450 basis points, according to the people. The benchmark-sized deal also includes five-year and seven-year securities.

Nissan’s mandate to banks earlier in the week included possible sales of euro-denominated bonds as well.

(Updates with details of bond sale in second paragraph)

©2020 Bloomberg L.P.

Nissan Begins First Dollar Bond Sale Since 1999 Alliance
 

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.
  • Any comment you publish, together with your investing.com profile, will be public on investing.com and may be indexed and available through third party search engines, such as Google.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Continue with Google
or
Sign up with Email