Maturity: 25 October 2011
Issue price: 100.14
Launch date: Tuesday 20 September
Payment date: 25 October
Lead mgr: UBS
GECC has not been in the market for some time and here we presented investors with a six year trade at 4bp over mid-swaps. The name, of course, needs no explaining.
The reason we chose the six year maturity was that although there is demand at the long end there is a gap in the secondary market in 2011 and we wanted to fill that. It also gave GECC the opportunity to do a new transaction, rather than increase an outstanding by Sfr100m.
We did some pre-sounding and by the time of launch the book was about two-thirds subscribed. The initial demand was from institutions, not so much insurance companies — which are buying at the long end — but banks, who make up about 20% of the deal, and other institutions with about 40%. Retail will come in for the remaining 40%.
"...this went well. They come to the market almost every month, but the pricing is attractive so we had some demand."
"...quite a nice one. Six year paper paying 4bp over mid-swaps for a Aaa/AAA/AAA name is attractive. It would be considered a bargain were GE not such a regular issuer in Swiss francs, as many investors have a lot of their paper already."
"...fairly priced for GECC. They have probably seen some demand from private banking in this part of the curve, but whether they are fully sold, I am not sure."