Search results for

The US Federal Reserve lifted spirits early this week when it cut interest rates by 25bp, but hopes of further easing fell afterwards when comments released by the FOMC and economic data suggested an end to the current cycle. But although the global market dollar market was limited to a $9bn two part Benchmark Note financing by Fannie Mae this week, which was healthily oversubscribed, bankers expect a wall of issuance to hit the market after Labor Day.

* Landesbank Hessen-Thüringen Girozentrale Rating: Aaa/AAA/AAA

UPC, the struggling Dutch cable company, will save itself $200m if it goes ahead with the planned flotation of Priority Telecom, its business telecoms unit. UPC bought Cignal Global Telecommunications last year in exchange for 16% of Priority Telecom, and as part of the deal UPC said it would float Priority before October 1. If not, then UPC agreed it would pay the former Cignal shareholders $200m in UPC shares or cash.

Deutsche Bank has won the mandate to lead the Eu400m rights issue for Suedzucker, the German sugar producer. The shares will be offered at a fixed price to all shareholders at a ratio of 9:2 or 5:1. The sale represents 20% of Suedzucker's Eu2.5bn market capitalisation. At a shareholder meeting yesterday (Thursday), Suedzucker confirmed that it would offer the shares at a 20% discount on the market price excluding the dividend.

Dresdner Kleinwort Wasserstein has won the sole mandate to arrange a Eu1.6bn loan to support the Eu2.63bn acquisition of Italy's Elettrogen by an Endesa-led consortium. The loan is the latest in an impressive line of jumbo facilities to come out of Italy over the summer months. It is also an impressive amount for just one bank to underwrite and shows how keen DrKW is to develop its name in the European debt markets.

Hungary Mandated arrangers Bank Austria and Royal Bank of Scotland have signed banks into the Eu70m five year revolving credit facility for Bank Austria Hungary.

Essent, the Dutch utility, signed a euro2 billion ($1.83 billion) debt issuance programme on Tuesday, August 21, and has already issued the first trade off the facility. ABN Amro was the arranger. UBS Warburg lead-managed the debut deal. The programme was due to be signed in March this year (see MTNWeek, issue 222), but Rene Santegoeds, treasurer at Essent, says: "There was a delay because of internal discretions, in particular which of the two named issuers should do the issuing." The inaugural trade is said to be a ¥55 billion ($465.52 million) private placement. Santegoeds says: "I don't want to comment on the inaugural trade. There are some political issues that I can't mention." Now that trading has started, Santegoeds expects most trades to be vanilla euro deals. The maturities will be decided later, depending on Essent's other commitments. The dealers for the facility are the arranger, BNP Paribas, Deutsche Bank, Merrill Lynch and UBS Warburg.

* Abbey National Treasury Services plc Guarantor: Abbey National plc

* Casino Guichard-Perrachon & Cie SA Rating: BBB/BBB+

Seven issuers were doing trades in euro on Friday. Hypothekenbank in Essen announced the biggest deal of the day: a euro150 million ($134.30 million) note that matures in February 2003. Lehman Brothers Holdings did the four smallest trades. Three of the four-year notes were sized at euro1.96 million, and the other was for euro5.88 million. Societe Generale Finance did a euro10 million and a euro20 million trade. The first goes out to August 2006, the second to January 2011. Rabobank Nederland also did a euro10 million trade, but it has a zero coupon structure and matures in September 2009. Credit Lyonnais Finance, Deutsche Bank and Hypo Alpe-Adria Bank made up the other three trades on Friday. Credit Lyonnais and Hypo Alpe-Adria Bank both opted for euro7 million deals. Credit Lyonnais's matures in November next year and pays a final coupon of 21.2%, and Hypo Alpe Adria Bank's goes out to May 2005 and pays a final coupon of 7.193%. Deutsche's trade has a tenor of just under five years.

There were just seven euro trades yesterday and volumes were small. Three notes were traded for under euro7 million ($6.42 million). Both Banque Generale du Luxembourg and EBS Building Society (EBS) traded euro6 million MTNs. The former concluded a one-year note to be issued on September 4. The note pays interest singularly and has a final coupon of 8.135%. EBS is set to issue its note on August 30. The note pays interest singularly and matures on December 30 2005. Merrill Lynch concluded a five-year note, which is to be issued on August 31. The note has a zero interest payment frequency. Aegon and Westfalische Hypothekenbank boosted volumes with euro100 million trades. Aegon is to issue its MTN on August 29. The note pays interest singularly and matures on March 29 2003. The latter's is a five-year note that pays interest semi-annually. BRV traded a euro20 million note and Erste Bank der Oesterreichischen Sparkassen concluded a euro25 million trade.