Household Finance Corp., a subsidiary of U.S. consumer finance giant Household International, has entered into a foreign exchange swap to convert a EUR750 million (USD791.4 million) bond offering into dollars. An official in Prospect Heights, Ill., said bringing the issue back into U.S. dollars aided the loan house in complying with Financial Accounting Statement 133 guidelines, which favors domestic currency debt. Household is maintaining the issue's fixed rate status in order to match funds in the firm's asset liability mix, he added.
The swap mirrors the maturity of the bond, due for completion in 2006. The official declined to name the counterparties of the swap, noting that there are several. ABN AMRO, BNP Paribas, Deutsche Bank and HSBC lead managed the bond.
