Maturity: October 2, 2013
Issue/re-offer price: 99.584
Spread at re-offer: 48bp over mid-swaps
Launched: Thursday September 25
Lead mgr: Merrill Lynch
This is the first fixed rate 10 year deal from Merrill Lynch since 1998. Distribution was broad based and European in nature. A wide variety of accounts was involved.
We had originally sounded the market out about a transaction at 47bp over mid-swaps and had a good deal of focus and feedback at that level.
Overnight, though the Dow sold off and the market softened. Merrill Lynch is sensitive about doing the right thing for investors and we chose to launch the deal today (Thursday) at 48bp.
We broke syndicate on the 10 year this afternoon and the deal tightened at the break, so the bonds are trading at 47.5bp/46.5bp.
Investor diversification is an objective for Merrill Lynch. We launched a five year floating rate note on September 2. That was for Eu500m and was later tapped for a further Eu750m.
The borrower is keen to diversify into the European account base and to provide something in the long end of the curve, which we have not accessed for a while and this was a good way of doing that.