A Noble trade

Noble Group comes to the high yield market with a deal that looks investment grade.

Commodity trading company Noble Group yesterday priced one of the most successful debut offerings of international debt as it secured $700 million at 225bps over treasuries. The deal gives the company all in cost of funds of 6.756%.

After a one week road show the book was said to be $2 billion in size with almost 200 accounts present. This allowed the bonds to price at the tight end of the range of 225bps-237.5bps over treasuries and upsize from an initial size of $500 million.

However, what is surprising about the deal is that while the bonds were rated non-investment grade at Ba1BB, the covenant...

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