Citic Resources $1 billion high-yield bond prices at 6.8%

The record transaction for Citic Resources attracts wildly varying opinions on pricing, but clears and stays close to re-offer levels.

Citic Resources raised a record $1 billion yesterday through a Reg-S, 144a seven-year bond provisional BBBa2,pricing at 6.8% 215bp over Treasuries. The transaction built a book of $4.6 billion, , closing with a coupon of 6.75%. The company will use the proceeds to fund the acquisition of 50% of parent company Citic GroupÆs interests in its Kazakhstan subsidiaries.

The transaction, managed by Morgan Stanley and Bear Stearns, is currently holding close to re-offer levels. The leads are...

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