lg-electronics-issues-upsized-fiveyear-frn

LG Electronics issues upsized five-year FRN

New regulations preventing local Korean investors from buying corporate paper has an impact on the bond's pricing.
LG Electronics, a leading company in the global consumer electronics market, priced a $500-million deal last night at 73bp over three-month dollar Libor. The deal came in at the mid-point of initial guidance released earlier this week of 70bp-75bp over mid-swaps. The five-year Reg-S senior FRN, rated BBB-Baa3, closed with a coupon of 65bp over Libor and a discount margin of 73bp over Libor.

The deal was managed by Deutsche Bank, HSBC, JPMorgan, KDB and Morgan Stanley, and involved a roadshow in Hong Kong, Singapore and London.

In terms of comparables, bankers quoted Hyundai CardÆs November 2010s, which were trading at 48bp over Libor, as well as Hyundai CardÆs January...
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