PCCW-HKT completes benchmark bond

Books close five-and-a-half times covered as the Hong Kong telco comes roaring back to the international bond markets.

HSBC closed a $500 million 10-year deal for PCCW-HKT last night Thursday slightly inside price guidance of 240bp to 250bp over Treasuries. After a one-day bookbuild, pricing was settled at 99.533% on a coupon of 6% to yield 6.063% or 237bp over Treasuries.

It was a deal where everyone appears to have won. For the lead manager, fees of 47.5bp equate to the kind of compensation levels rarely countenanced by other borrowers. For PCCW-HKT, an inverted swap curve enabled pricing of a 2013 transaction inside a 2011 deal on a Libor basis. And for the US investors, which dominated the book, the yield pick-up between the two transactions was healthier than...

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