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 supporting the deal in the secondary market.

In terms of comparables, KazhakstanÆs 100%-state-owned Intergas BBBaa1 priced a $600 million 10-year transaction at 6.5%, or 183bp over Treasuries. Tengiz Chevroil sponsored by AAAa1 Chevron...
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