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Structured Bonds

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  • Continental issued a €750m bond to cut its funding costs on Tuesday. The speculative grade-rated German tyre maker priced the deal with a yield of just 3.25%, on a book of over €3.2bn.
  • Fiat, the Italian carmaker, priced an €850m long six year bond today, winning a strong book. The notes came with a 6.75% coupon at par and traded up on the break.
  • FTE Automotive, the German hydraulic clutch maker bought by Bain, has released guidance in the 8.75% to 9% area for its debut high yield bond. Books closed at 4pm today with pricing set to happen thereafter.
  • UK cinema chain Vue Entertainment has launched its £550m-equivalent buyout financing bond after premarketing it last week. The seven year senior secured notes will come with fixed and floating rate coupons.
  • Continental, the German tyre maker, wants to sell at least €500m of high yield bonds to partly refinance its 7.5% bond issue due in 2017.
  • Chinese clothing maker Eratat Lifestyle Limited has issued a Rmb134m ($21.7m) bond that was used to back what bankers think is the first asset-backed security issued in the dim sum market. It was a private placement sold on June 21, and allowed investors to lock in sizeable returns that would have been difficult to achieve from a public deal.