Search results for

LEAD MANAGERS Deutsche Bank, Dresdner Kleinwort Benson and Morgan Stanley Dean Witter will today (Friday) execute their global offer of shares in Société Européenne des Satellites (SES). Investor interest in the deal has blossomed steadily since the company announced at the beginning of this year that it was planning to float. "This kind of story makes a change from the large state sales which have recently run into investor fatigue," said one salesman.

SIRONA Dental Systems, one of the world's leading manufacturers and suppliers of professional dental equipment, this week priced its DM170m high yield bond. The issue was launched without US registration rights in a move illustrating the growing depth of the European investor base for sub-investment grade corporate debt. Proceeds from the deal will refinance a DM170m bridging loan which formed part of the financing for the management buy out of Sirona Dental Systems from Siemens. Launched at a spread of 440bp over Bunds the deal was priced at the lower end of the official price talk. This was an achievement given the difficult market environment, claimed lead manager Warburg Dillon Read.

Market commentary Compiled by Tawanda Nyandoro, RBC DS Global Markets, London. Tel: +44 171-865 1087

* Asda Group plc Rating: A2

* Deutsche Siedlungs- und Landesrentenbank Rating: Aaa/AAA (S&P/IBCA)

AFTER A hotly contested bidding process Apicorp, Banque Paribas and Credit Suisse First Boston have won the $615m Qatar Vinyl Company (QVC) arranging mandate, narrowly pipping a lower priced ANZ/IBJ bid. A more favourable repayment profile decided the bidding. The deal has a 12 year tenor with a two year extension clause. Pricing will be around 115bp over Libor.

BRAZILIAN banks Unibanco and Banco ABN Amro moved fast to take advantage of slightly calmer markets in the latter part of the week to tap funds in lire and dollars. Unibanco issued a Lit100bn two year deal at 311bp over lira swaps on Wednesday led by Chase, and Banco ABN followed up on Thursday with a $50m two year Eurobond offering at 335bp over Treasuries.

Lead arrangers of the $2.6bn loan package for Bacardi -- Goldman Sachs, Barclays. Citibank, Bank of Nova Scotia, Den Danske, Deutsche Bank, JP Morgan, NationsBank and Santander -- have closed general syndication and signed the deal. The deal has been one of the most successful and impressive transactions of the year. In senior syndication a massive $5.75bn was raised, showing the depth of demand. The success is all the more impressive considering the pricing -- which ranges between 25bp and 45bp over Libor -- attracted criticism when it came out.

Arranger Bank of Montreal is preparing to launch general syndication of the $530m debt financing supporting Sithe Energies' purchase of 12 power plants from Boston Edison. NationsBank and SG have both taken $150m sub-underwriting positions on the deal.

* Bank of NT Butterfield & Son Ltd Rating: Baa1 (Moody's), A- (Fitch IBCA)

HIGH yielding Slovak risk this week again struck the right chord with Deutschmark investors as institutions and retail accounts rushed to buy a DM175m three year offering by Vodohospodar-ska Vystavba, the Slovak water utility. Bankers said the issue benefited from the positive reception to last week's DM200m increase to the DM600m 8% 2003 transaction by the Ba1/BBB- rated Slovak Republic, which guaranteed the Vodohospodarska deal. Commerzbank and Nomura ran the books on both transactions.

8031