German media concern Bertelsmann has raised $500m from US investors in a private placement to offset existing bank loans.
The issue, which was more than three times oversubscribed and represents the biggest US private placement to date by a German group, is divided into three tranches: one of $100m with a maturity of seven years and two of $200m each with a maturity of 10 and 12 years respectively.
Most of the placement's 17 investors are US insurance companies and pension funds.
Commenting on the transaction which was arranged by Bertelsmann's subsidiary Bertelsmann US Finance, Inc. following a five-day roadshow, CFO Siegfried Luther noted that "this issuance underscores Bertelsmann's focus on the capital market and our appeal for investors with a long-term view. This step opens up a select group of investors in the US capital market for us and gives our financing a broader base."