Electrolux to go head to head with Securitas

Electrolux will this week join Securitas in hoping to benefit from buoyant demand for strong triple-B credits offering diversification opportunities, when it launches a seven year euro transaction via ABN Amro and Goldman Sachs.

  • 23 Feb 2001
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The two Swedish corporates will be hoping that the market is more receptive than it was late last year, when the two companies were unable to raise as much as they had wished because of hostile market conditions.

In late November, Electrolux (Baa1/BBB+) raised Eu300m in a 6.125% December 2005 issue via Lehman Brothers and Schroder Salomon Smith Barney. The transaction, lower than the Eu500m targeted, was priced at the wide end of price talk, at 80bp over mid-swaps.

A week later, Securitas (Baa1/BBB+) launched a 6.125% January 2006 issue after having been forced to opt for a five rather than a seven year transaction, cut the size of its deal from Eu500m, and price it at the wide end of the indicated 90bp-95bp over mid-swaps range. BNP Paribas and Deutsche Bank were leads for Securitas.

One banker involved in the last Securitas transaction said that the pricing differential between the two borrowers could be explained by the positive Standard & Poor's outlook for Electrolux and the white goods manufacturer's higher name recognition.

This morning (Monday), the Securitas five year paper was trading at 94bp/89bp over mid-swaps and the Electrolux at 90bp/80bp over.

Unlike Securitas, Electrolux will not roadshow before its transaction. The company visited investors ahead of its November issue, and Bjorn Uhlin, head of Nordic corporates at ABN Amro, told EuroWeek that an update on the Electrolux credit should prove sufficient.

"Given the strong demand for non-auto, non-telco paper we are seeing, there is a very strong likelihood of Electrolux getting a successful deal done without the need for a roadshow," he said.

Uhlin said that along with investor appetite, Electrolux hopes to take advantage of the lower yields available than in November and the opportunity to launch a longer dated transaction.

The two Swedish corporates will have been encouraged by the success of Birka Energi (Baa1/BBB+) in selling Eu500m of seven year paper at the beginning of February. ABN Amro and Schroder Salomon Smith Barney priced that issue at 94bp over mid-swaps - inside price talk of 95bp-98bp over. Birka, too, had previously been a victim of the difficult end of year market, postponing a planned three year floating rate note.

  • 23 Feb 2001

All International Bonds

Rank Lead Manager Amount $m No of issues Share %
  • Last updated
  • Today
1 Citi 144,600.11 538 8.12%
2 JPMorgan 134,850.50 558 7.57%
3 Bank of America Merrill Lynch 121,929.46 400 6.85%
4 Barclays 103,160.58 369 5.79%
5 Goldman Sachs 100,615.93 288 5.65%

Bookrunners of All Syndicated Loans EMEA

Rank Lead Manager Amount $m No of issues Share %
  • Last updated
  • Today
1 JPMorgan 24,749.48 24 10.61%
2 Citi 15,693.04 32 6.73%
3 SG Corporate & Investment Banking 14,413.17 40 6.18%
4 Deutsche Bank 13,118.70 35 5.63%
5 Bank of America Merrill Lynch 12,117.87 27 5.20%

Bookrunners of all EMEA ECM Issuance

Rank Lead Manager Amount $m No of issues Share %
  • Last updated
  • Today
1 Goldman Sachs 5,976.79 28 10.21%
2 JPMorgan 4,842.28 23 8.27%
3 Citi 4,170.20 23 7.12%
4 Deutsche Bank 4,055.26 23 6.93%
5 Morgan Stanley 2,713.30 22 4.63%