LG Caltex finds US audience for bond

The Korean oil refiner has bucked the recent trend of Asian bond deals and underpinned its latest 10-year offering with US-driven demand.

A $300 million euro-144a issue priced last night Wednesday in New York, represents LG Caltex's first fixed-rate bond issue since the Asian financial crisis and the first corporate Korean transaction to move out to the 10-year level since then, too.

Led by Credit Suisse First Boston, books closed at about $410 million and led to pricing at 98.712% on a coupon of 7.75% and yield of 280bp over Treasuries. For the July 2011 transaction, this represented the outer end of final price talk at the 275bp to 280bp level and reflected enormously difficult conditions in the wake of Argentina's political problems and PCCW-HKT's large and ever looming shadow.

For the...

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