The Wall Street Journal-20080206-New Securities Issues
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New Securities Issues
Full Text (526 words)The following were among recent offerings and pricings in U.S. and non-U.S. capital markets, with terms and syndicate manager, based on information provided by Dow Jones Newswires and Factiva. (A basis point is one-hundredth of a percentage point; 100 basis points equal a percentage point.)
CORPORATE
Caterpillar Financial Services Corp. -- $750 million of multitranche bonds was priced through lead managers Bank of America Securities, Citigroup and Goldman Sachs, according to IFR Markets. Terms: Amount: $250 million (FRN); maturity: Feb. 8, 2010; coupon: 45 basis points more than three-month London interbank offered rate; price: 100. Amount: $500 million (fixed); maturity: Feb. 8, 2013; coupon: 4.25%; price: 99.871; yield: 4.279%; spread: 150 basis points more than Treasurys. Common terms: ratings: A2 (Moody's Investors Service), single-A (Standard & Poor's Ratings Group).
Fannie Mae -- $3 billion of two-year notes was priced through lead managers Deutsche bank, Lehman Brothers and Morgan Stanley, according to the agency. Terms: Maturity: April 9, 2010; coupon: 2.5%; price: 99.750; yield: 2.62%; spread: 68.5 basis points/2.125% more than Jan. 31, 2010, Treasurys; settlement: Feb. 7, 2008 (flat).
Fannie Mae -- $3 billion of five-year notes was priced through lead managers Citigroup, Merrill Lynch and J.P. Morgan, according to the agency. Terms: Maturity: April 9, 2013; coupon: 3.250%; price: 99.527; yield: 3.351%; spread: 72 basis points/2.875% more than Jan. 31, 2013, Treasurys; settlement: Feb. 7, 2008.
Kinder Morgan Energy Partners -- $900 million of multitranche bonds, comprising a $600 million 10-year deal and a $300 million tap of the company's existing 6.96% notes due 2038, were priced, a syndicate official at one of the lead managers said. Royal Bank of Scotland and Wachovia Bank led the offering. Terms: Amount: $600 million; maturity: Feb. 15, 2018; coupon: 5.95%; price: 99.791; yield: 5.978% (replace by Libor); spread: 240 basis points more than Treasurys; settlement: Feb. 12, 2008. Amount: $300 million; maturity: Jan. 15, 2038; coupon: 6.95; price: 100.093; yield: 6.942%; settlement: Jan. 15, 2008. Common terms: ratings: Baa2 (Moody's), triple-B (S&P).
GLOBAL
OTE -- 2.1 billion euros multitranche bond issue was priced through lead managers Citi, Dresdner Kleinwort, Merrill Lynch, and Morgan Stanley, one of the lead managers on the deal said. Terms: Amount: 1.5 billion euros; maturity: Feb. 14, 2011; coupon: 5.375%; reoffer: 99.75; spread: 160 basis points more than midswaps; yield: 5.467%. Amount: 600 million euros; maturity: Feb. 12, 2015; coupon: 6%; reoffer: 99.705; spread: 195 basis points over midswaps; yield: 6.053%. Common terms: payment: Feb. 12, 2008; ratings: Baa1 (Moody's), triple-B-plus (S&P) denominations: 50,000 euros; 1,000 euros; listing: Luxembourg. The bonds include a change of control clause that allows investors to put the bonds back to the company at par if OTE's rating is cut to below triple-B-minus. If the rating falls below triple-B- minus, investors will get a 1.25% coupon step-up.
Unicredito Italiano SpA -- 2.5 billion euro bond issue was priced through lead managers Deutsche Bank, Societe Generale, UBS and Unicredit, one of the lead managers said. Terms: Maturity: Feb. 12, 2013; coupon: 4.875%; reoffer: 99.852; payment: Feb. 12, 2008; spread: 87 basis points more than midswaps; ratings: Aa2 (Moody's), single-A- plus (S&P) and A+ (Fitch Inc.); denominations: 50,000 euros; listing: Luxembourg.
