Search results for

Bear Stearns' $250 million term loan "B" for Appleton Papers, backing a management-led buyout, is said to be picking up commitments with a number of funds commiting a total of over $100 million to the credit. After launching to a skeptical buyside, the "B" had pricing flexed from LIBOR plus 31/ 2% to 41/ 4% and is being offered with a 13/ 4% discount. There is some concern among investors over the sunset nature of the business, since the main source of revenue is carbonless paper, considered a declining business (LMW, 8/10). The exact level of commitments could not be ascertained by press time.

Australian Magnesium Corp (AustMag) has made its third attempt to sell stock in four months. The deal is a A$500m equity raising, which has already been pulled back from the market twice. This time, the offer is not underwritten, as nervous investment banks fear putting their capital at risk in such volatile markets with so much latent event risk. Apparently undeterred, AustMag lodged the prospectus for its revised offer this week, ending two weeks of speculation after being forced to admit in late September that it was struggling to secure broker backing for the offer.

AUSTRALIA AMP Office Trust has increased its A$120m, 7.25% 2003 bond by A$50m via UBS Warburg. The increase, which is fungible with the original issue, was priced at 48bp over quarterly asset swaps, or 71bp over the 2003 Commonwealth government bond; a level which is only slightly tighter to the original launch price of 47bp in 1998. However, bankers noted that while the pricing originally tightened in, it later suffered along with the rest of the market from the cautious investor sentiment.

Dentsu, which controls 27.3% of Japan's advertising industry, would face an uphill task trying to convince institutional investors to buy as much as ¥54bn of stock, as it prepares for its IPO on the Tokyo Stock Exchange. So instead, the company has decided to place 80% of the 135,000 share offering at home, with most, 75% of that, going to retail buyers. The other 20% will be targeted at international investors. Dentsu plans to sell 135,000 shares, 25,000 of which will be new stock. Shareholders, including Kyodo News, Jiji Press and Dai-Ichi Kangyo Bank will sell the other 110,000 shares. Of the 110,000 existing shares, Japanese investors will be offered 83,000, with the remainder sold abroad. Merrill Lynch, Nomura and UBS Warburg are arranging the sale.

AUSTRALIA Oil and gas producer Santos on Wednesday night announced a A$250m off-market share buyback and the issue of a minimum A$250m in reset convertible preference shares. Merrill Lynch is sole bookrunner, underwriter and arranger. Macquarie Bank is joint lead manager.

Bankers working on the $500m offering to sell down the next stage of the government's Korea Tobacco & Ginseng (KT&G) shareholding, have reported strong investor interest. The combined convertible bond and GDR offering is due to be priced on October 24. The roadshow began last Thursday 11 in Hong Kong and books on the convertible bond have already closed. The bonds are quoted in the grey market at 101.75%-102.25%. "This is a clear indication that the market thinks we are on the button on the pricing," said a banker close to the deal.

As reported last week, pre-marketing began on Monday for the IPO of the Petroleum Authority of Thailand (PTT), after the government last week gave the firm permission to sell up to 30% of the company. Final details of the offering have yet to be decided but it is hoped that, despite volatile markets and the weakness in Asia, the deal can proceed. "We are proceeding cautiously and methodically, given the current climate," said one banker working on the transaction. "Nothing is certain in the current market and geopolitical environment. Pre-marketing is producing an encouraging response and the equity markets are clearly open for the right deal, at least for the moment," he added.

Despite the gloomy picture for world air travel, Deutsche Bank, Merrill Lynch and UBS Warburg were jubilant yesterday (Thursday) as the A$300m surprise placement they launched was increased to A$450m due to strong demand. "You would not have imagined that an airline stock would be in the market in these times, yet alone increasing the deal size by 50%," said a banker working on the deal. The result of the issue, including allocation, will be known before the markets open in Sydney today (Friday). Qantas stock closed on Wednesday trading at A$3.24 and the initial A$300m new share offer was in the market with an indicated range of A$2.90 to A$3.10.

QBE Insurance Group, the largest Lloyd's of London underwriter, has raised A$663m ($338m) in a new share sale managed by Credit Suisse First Boston (CSFB), Macquarie Bank and Merrill Lynch. The funds are to shore up finances and to deal with claims from last month's terrorist attacks on the US. QBE sold A$542m of stock to institutional investors at A$5.50 a share and will sell a further A$121m of new shares to individuals. The deal helped QBE shares recover 17% as the market acknowledged that QBE had restored its capital ratios and its ability to write new business.

Singapore Telecommunications (SingTel) could be the first Asian telecoms operator to launch a global bond issue since September 11. The Singapore telecoms company is considering following up its successful acquisition of Cable & Wireless Optus with a jumbo transaction that could be priced in the coming months. SingTel announced this week that ratings adviser Goldman Sachs and Salomon Smith Barney (SSB)have been appointed joint advisers to evaluate the corporate's alternatives on refinancing its short term debt, with an international bond issue being one possibility.

Bouncing back from its failed attempt to launch a $2.5bn, 10 and 30 year dollar global bond issue in July, Pacific Century CyberWorks (PCCW) successfully delved into the long dated Japanese yen debt market this week. The controversial Hong Kong telecoms and internet operator privately placed a debut ¥30bn, 30 year non call five Euroyen transaction, with Merrill Lynch sole lead manager and bookrunner. The BBB rated issuer gained competitive pricing compared with dollar bonds issued by its regional and international peers. PCCW also beat the estimated 30 year spreads of its own postponed global bond issue.

After a quiet year in the Asian primary bond market, two Korean bank mandates have been awarded within days of each other and Salomon Smith Barney (SSB) is involved in both. Korea Development Bank has appointed Barclays Capital and SSB to lead manage its long awaited $500m global bond offering, while SSB has also been appointed sole lead manager of a $150m, 10 year Eurobond for KorAm Bank, awarded late last week.