Nissan Motor plans $4 billion bond sale to boost cash and refinance debt

Nissan Motor plans to sell $4 billion in U.S. dollar- and euro-denominated bonds to boost cash and refinance debt. The automaker aims to raise at least $750 million in each of the five-, seven-, and 10-year dollar tranches with coupons in the mid-7% to low-8% range. It also plans a four- and eight-year euro issuance with prices in the high 5% to high 6% range. Additionally, Nissan plans to sell a 150 billion yen six-year convertible bond.

Nissan reported a $4.5 billion net loss for the financial year ending in March due to declining sales and an ageing vehicle lineup. Facing 700 billion yen in debt due this year, all major credit-rating firms have downgraded Nissan to “junk” status. Fitch noted Nissan’s weaker credit profile compared to GM, Ford, and Stellantis, citing lower cash flow margins.

Despite challenges, Fitch highlighted Nissan’s low leverage and net cash position as strengths for its current rating. New CEO Ivan Espinosa unveiled a restructuring plan to close seven plants and cut 15% of the workforce. Nissan warned that further credit rating downgrades could complicate future fundraising efforts.

Read more at Yahoo Finance: Nissan Motor eyes $4 billion in bond sales, term sheet shows