Wednesday 04 April 2018 by FIIG Research Trade opportunities

Three new DirectBonds

The latest DirectBonds offer diversification across leading companies in the automotive, pharmaceuticals and Australian insurance sectors

AmericanAxle

American Axle & Manufacturing Inc.

American Axle & Manufacturing Inc. (AAM) designs, engineers, manufactures and supplies driveline, metal forming, powertrain, and casting technologies for automotive, commercial and industrial markets. It offers vehicle architectures and related components, such as powertrain and chassis system components, for a range of vehicles.

Headquartered in Detroit, Michigan, the company has over 25,000 associates operating at more than 90 facilities in 17 countries to support its global and regional platforms. It has operations in Brazil, China, Germany, India, Japan, Luxembourg, Mexico, Poland, Scotland, South Korea, Sweden, Thailand and locations across the United States. AAM operates as a subsidiary of American Axle & Manufacturing Holdings Inc.

AAM focuses on quality, operational excellence and technology leadership. In January, AAM and Drexler Automotive GmBH entered into an agreement to bring high performance differential technologies from the premium market to the general market of passenger cars, light trucks, crossovers and SUVs. These differential products greatly improve vehicle handling and traction for all-wheel drive or rear-wheel drive vehicles.

The AAM March 2026 notes are rated B/B2/BB- (Standard & Poor’s/Moody’s/Fitch). View Factsheet

Issuer Bond type Structure Maturity date Rate Minimum investment amount Yield to worst*  Payment 
American Axle & Manufacturing Inc. Fixed Senior unsecured 15 March 2026 (first call date on 15 March 2021) 6.25% USD10,000 5.83%pa Semi annually

*Yield to worst accurate as of 4 April 2018, subject to change.

Teva Pharmaceuticals

Teva Pharmaceuticals Industries Limited (Teva) was established in 1901 and headquartered in Israel, the company is the world’s largest generic medicines producer, leading in the United States and Europe and operating in North and South America, Japan and South Korea. It has a portfolio of more than 1800 molecules to produce a wide range of generic products in nearly every therapeutic area. Teva is also one of the world’s leading manufacturers of active pharmaceutical ingredients.

Teva operates its business in two segments – generic medicines and specialty medicines, most significantly the company’s core therapeutic areas of central nervous system medicines such as Copaxone®, Azilect® and Nuvigil© and of respiratory medicines such as ProAir® HFA and QVAR®. The company’s research focus areas also include neurodegenerative disease, multiple sclerosis, pain and migraine as well as developing its specialty pipeline products and clinical trials.

Teva Pharmaceutical Finance Netherlands III B.V. (Teva Finance) is an indirect, wholly owned subsidiary of Teva, and has no assets or operations other than in connection with this offering.

Both issues are rated BB/Ba2/BB (Standard & Poor’s/Moody’s/Fitch). View the July 2023 and October 2026 Factsheets

Issuer Bond type Structure Maturity date  Rate  Minimum investment amount  Yield to worst*  Payment
Teva Pharmaceuticals Netherlands Fixed Senior unsecured 21 July 2023 2.80% USD10,000 5.64%pa Semi annually
Teva Pharmaceuticals Netherlands Fixed Senior unsecured 1 October 2026 3.15% USD10,000 5.74%pa Semi annually

*Yield to worst accurate as of 4 April 2018, subject to change. 

Insurance Australia Group

Insurance Australia Group Limited (IAG) offers a wide range of general insurance products to protect the homes, lifestyles and business of its millions of customers throughout Australia, New Zealand and Asia. It has established key relationships with Berkshire Hathaway, NRMA, RACV, Coles Insurance and Asian institutions, AmBank Group and State Bank of India.

In August 2017, IAG consolidated its nine Australian general insurance licences into two licenced Australian entities: Insurance Australia Limited (IAL) and Insurance Manufacturers of Australia Pty Limited (IMA). The licence consolidation was key for IAG’s business to become simpler, more efficient and agile. The reduction in insurance licences is expected to free up resources to be used to further improve operations and customer service. 

The notes are rated BBB by Standard & Poor’s. View Factsheet

Issuer Bond type Structure Maturity date  Rate  Minimum investment amount  Yield to worst*  Payment 
Insurance Australia Group Limited Floating rate Tier 2 unsecured subordinated 15 June 2044 (first call date on 15 June 2024) 3m BBSW+2.10%pa AUD10,000 4.31%pa Quarterly

*Yield to worst accurate as of 4 April 2018, subject to change. 

Please note all bonds above are available to wholesale investors only.


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