kia-puts-deal-on-hold-hang-seng-prices

Kia puts deal on hold, Hang Seng prices

A temperamental market beat down yet another transaction yesterday, with Kia Motors pulling its $300 million transaction. Meanwhile, Hang Seng managed to price its deal thanks to a defensive instrument and a strong credit rating.
Kia Motor's $300 million five-year transaction fell victim to a market that has been rocked by movements resulting from the US subprime mortgage meltdown

The company, one of KoreaÆs top car manufacturers and rated Baa3/BBB, announced the offering earlier this week The deal was due to price Thursday under a guidance of 90bp over Libor

But even at a more generous price (the deal was termed "slightly ambitious" by one investor), this trade could not have gone through in current market conditions given dwindling investor appetite for lower-rated credit, say sources from syndicate desks not involved in the deal

Meanwhile Hang Seng Bank, a local Hong Kong subsidiary of HSBC, issued a $300 million lower...
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