Air Products and Chemicals Inc. plans to sell a three-year â‚¬250m floating-rate note says one of the banks managing the sale.
Guidance for the bond has been set at Euribor plus $quot;low to mid teens$quot;, the bank said. The deal will be launched in the near future, subject to market conditions.
A floating rate note is a note with a variable interest rate. With these adjustments to the interest rate are usually made every six months and are tied to a certain money-market index. These protect investors against a rise in interest rates (which have an inverse relationship with bond prices), but also carry lower yields than fixed notes of the same maturity. It's essentially the same concept as a adjustable-rate mortgage, except FRNs are investments (not debt).
Bank of America Securities Ltd and JP Morgan are joint lead managers.