Maturity:13 February 2014
Coupon:three month Euribor plus 15bp
Spread at re-offer:three month Euribor plus 19bp
Launched:Tuesday 6 February
Payment date:13 February
Joint books:Barclays Capital, Deutsche Bank, Wachovia
Wachovia is a well known US bank and has been coming to the European market since the second half of 2006 and has been able to get good execution in both sterling and euros.
The euro market offers a very high level of liquidity and the issuer decided to take this opportunity to take on board some longer term funding at the holding company level.
The seven year part of the curve has been the sweet spot on the curve in terms of appetite across bank and asset managers buyers. Furthermore, Wachovia has printed deals in five, 10 and 12 years and wanted to have another point on the curve.
We went out with guidance of the 19bp area and got early momentum. We put together a Eu1.5bn order book which meant that we could print a solid Eu1bn transaction at the 19bp number.
The strength of the demand has been driven by the fact that there has been a lack of corporate supply and there is a lot of cash going into financials at holding and operating levels whether in fixed or FRN formats.
The usual investors were involved in the deal in terms of buyers.
"...I understand the leads had a well oversubscribed book. Wachovia is now a regular issuer in the European market and investors clearly are still not full of the name."