The leads were able to upsize the deal from $300 million back to its originally enviisioned size on the back of a solid book. The deal had initially been marketed to investors during roadshows in mid-May, but for a size of $400 million, until market sentiment turned and the leads and borrower -needing to get a deal done prior to its quarterly reporting deadline at the end June û downsized the deal by 25%.
The deal priced at 99.737%, yielding 6.125%, which is equivalent to 73bp over the mid-swaps or 124.6bp over US Treasuries. Inside of guidance that was deemed to be quite generous compared with other benchmarks.
Revised guidance was announced last Wednesday at 72bp to 75bp over mid-swaps. Initially the leads had gone out with 75bp over. At the time that was about 10bp back of the secondary trading range of its own 5.125% May 2015 callable May 2010 and 16bp back of its existing 5.75% June 2014 callable June 2009.
Even at the tighter level the deal still looks cheap; however given market conditions the outcome was not unexpected. Indeed many bankers were pragmatic about the finalised pricing level. ôIt is cheap, but the way the market has been acting over the past few days, and NACFÆs restricted timing schedule, they didnÆt have the luxury of waiting for a better market window to get this deal done,ö says one Hong Kong-based DCM banker.
The deals two key comparisons û its own 2015 and Woori BankÆs $1 billion 2016 no call 2011 û had traded wider in recent days. NACFÆs existing deal had traded out 4bp on Thursday to around 69bp over. While Woori bank was trading at around the 72bp level.
The deal built up a considerable book in light of the weak markets, closing oversubscribed to the tune of $900 million, with 55 accounts taking part. Geographically the deal was split 50% Asia ex-Korea, 25% Korea and 25% Europe.
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