UniCredit rides 12nc7 wave amid ‘unsustainable’ rally
UniCredit had a strong response from European investors on Monday morning when it launched a 12 year non-call seven tier two deal, despite only offering a minimal new issue premium and little concession to where it would have priced a similar deal but with a bullet maturity. However, after three weeks of almost continual tightening in the FIG credit markets, bankers expressed concern that the good conditions were unsustainable.
Lead managers Commerzbank, Goldman Sachs, Morgan Stanley, Royal Bank of Scotland and UniCredit went out with initial pricing thoughts of 425bp area over mid-swaps on Monday morning.
Orders had reached €1.5bn by 10.30am London time, and the leads later set official guidance at 415bp over mid-swaps with €2.6bn
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