First Pac completes high yield bond

One of the most unusual and taxing high yield issues of the year gets priced.

UBS completed a slightly scaled back $115 million three-year deal for Hong Kong based conglomerate First Pacific yesterday Wednesday. The Reg S transaction in the name of CAB Holdings was priced at 99.35% on a coupon of 8.25% and yield of 8.5% to give a spread of 649bp over Treasuries. On a Libor basis, the deal came out at 608bp, representing a roughly 150bp premium to First Pac's operating company Indofood, whose 10.375% June 2007 bond was trading at 452bp at the time of pricing.

Both companies share the same single B rating from Standard Poor's and although the two transactions are completely different animals, most investors would have looked at Indofood...

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