Hidili raises $400m, but bond widens after hectic week

31 Oct 2010

Coking coal producer Hidili Industry International Development raised $400m in the international bond market on Friday. The deal generated strong demand, but widened in secondary trading after a frenetic week — and led to some questions about whether the issuer paid enough.

Bookrunners Bank of America Merrill Lynch, Citi, JPMorgan and UBS priced the $400m five year non-call three bond to yield 8.625%, at the tight end of final guidance between 8.625% and 8.75%. The lead managers initially approached investors with whispers of the mid-to-high 8% area, then firmed that ...

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