Guarantors: Senior upstream guarantees from all main operating companies (100% sales and Ebitda)
Rating: B (Fitch)
Maturity: 6 November 2013
Issue price: 100.00
Spread at re-offer: 467bp over the 4.75% October 2011 UST
Launch date: Thursday 26 October
Payment date: 6 November
Lead mgr: ING
The order book was 3.7 times oversubscribed with 118 accounts participating across 21 countries. A lot of accounts had their allocations cut back, so the bonds tightened in secondary trading.
We found it relatively easy setting up meetings because of the strong level of interest. Emerging market accounts found the credit interesting as did high yield crossover accounts who found the seven non-call four structure appealing.
We had three days of roadshows in Asia last week before three days in Europe this week. We went out with guidance of the 9.75% area on Monday, a level we considered fair but eye-catching enough to gather attention.
On Tuesday evening, we tightened to 9.5%-9.75%. The book took off after that. So much so that by the close of play Wednesday, we could clearly do $200m with most people looking at the tight end of the range, allowing us to refine guidance again to 9.375%-9.5%.
We closed books on Wednesday evening and priced a $200m deal at the tight end on Thursday at 4.11pm. The company got a great outcome, achieving the combination of tightness and issuing at the larger end of the size range.
"... it rallied a point in under half an hour, or the equivalent of around 20bp. I would question the execution of this deal. That sort of rally suggests they left some money on the table."
"...not a bad result at all. A company like that has limited funding needs and the market is so hot right now, every deal is blowing out."