Bayer starts hybrids cheap, cranks in hard
Germany’s Bayer took a cautious approach to issuing a €1.75bn dual tranche hybrid capital issue on Thursday, but despite the huge litigation battle it is facing, yield-hungry investors piled into the deal, pushing the book above €10bn and enabling Bayer to chop a fat slice off the yields.
The Baa1/BBB/BBB+ rated issuer, printing hybrid debt at an expected Baa3/BB+/BBB-, started marketing its 60 year non-call 5.5 and eight year bonds on Wednesday. The first yields offered were 3% area and 3.75% area.
“It’s very cheap,” said a banker away from the deal at the time.Bank of America ...