GLOBALCAPITAL INTERNATIONAL LIMITED, a company

incorporated in England and Wales (company number 15236213),

having its registered office at 4 Bouverie Street, London, UK, EC4Y 8AX

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  • THE United Mexican States virtually wrapped up its 1998 financing needs this week with the successful issue of Lit750bn worth of 15 year notes led by Deutsche Morgan Grenfell. The long-awaited offering -- mandated last October -- was launched at a fixed reoffer price of 99.85 to give a spread of 240bp over 15 year lira Libor, and traded up to 100.10 bid.
  • Bahrain The co-arranger syndication of the $200m five year term loan for Arab Banking Corporation arranged by Bank of Tokyo-Mitsubishi, Chase, JP Morgan, NatWest and Paribas is heading for a heavy oversubscription. Syndication was launched to co-arrangers on March 3, with eight banks already committed realising a $195m commitment. More banks should come in before the end of this week.
  • MORGAN Stanley Dean Witter this week launched three hugely successful convertible bond transactions totalling $960m, doubling this year's level of primary issuance from Europe and providing the markets with some desperately needed paper from a variety of corporates.
  • GLOBAL co-ordinators Dresdner Kleinwort Benson and Creditanstalt this week successfully executed the third international sale of stock in Mol, the Hungarian oil and gas concern. The company has long been a favourite among international and local investors and, despite the large correction in its share price following last year's re-rating of emerging stockmarkets, it remains popular with specialist and some generalist funds.
  • MORGAN Stanley Dean Witter this week launched three hugely successful convertible bond transactions totalling $960m, doubling this year's level of primary issuance from Europe and providing the markets with some desperately needed paper from a variety of corporates. Dedicated European convertible funds hailed this week's launch of bonds for Württembergische AG Versicherungs-Beteiligungsgesellschaft (WVB), VNU and ASM Lithography as exactly the type of paper that the market requires.
  • * Lead manager ABN Amro Rothschild has accelerated the subscription period for its Dfl 200m convertible for Stork. The seven year bond carries an indicated coupon of 4.375% to 4.625% with a conversion premium of between 25% and 30%. Investors have three years of hard call protection. Kempen & Co and Rabo Securities are co-lead managers. Credit Suisse First Boston and MeesPierson are co-managers.
  • * Commerzbank AG Rating: Aa2/AA-
  • United States Sumitomo has won the coveted mandate to arrange $145m of non-recourse financing to finance the construction of a new ballpark for the Detroit Tigers baseball team. The loan, which has been underwritten by Sumitomo, will have a 15 year tenor, including construction and term.
  • NTT launched only the second major issue of 1998 from a Japanese corporate this week with a $1bn 10 year global bond which had to strike a fine balance in pricing to ensure distribution in all three centres. Some bankers said the deal had been priced cheaply at 49bp over. Others, and not just the lead managers Goldman Sachs and Morgan Stanley, argued that it was set at exactly the right level to ensure the US distribution which the issuer wanted.
  • * De Nationale Investeringsbank Rating: Aa3/AA+ Amount: Pta7bn (increase to Pta10bn issue launched 04/03/98)
  • UNRATED Italian corporate Parmalat opened the euro sector to a new class of credits this week with the launch of the largest euro denominated floater. The Eu500m deal is also the largest corporate Italian Eurobond and the first unrated euro FRN. The deal set a new benchmark in the euro sector -- previously the domain of sovereigns and supranationals -- and emphasises the depth and breadth of demand for euro product. Parmalat upped the deal from Eu400m to meet demand.