shanghai-zendai-prices-bond-to-yield-10

Shanghai Zendai prices bond to yield 10%

The Chinese property company prices its bond at the mid-range of guidance, closing over three times subscribed.
Shanghai Zendai took on board investor feedback last night, by pricing its B2BB rated $150 million five-year fixed Reg-S bond at a double-digit yield of 10%, or 519bp over Treasuries. With an order book of $500 million, the transaction was over three times subscribed.

Sole bookrunner Merrill Lynch allocated 65% of the bonds to Asia, and 35% to Europe, with funds receiving 75% of the total allocation, banks 7%, private banks 13%, and insurance companies 5%. 65 investors participated in the transaction.

ôGenerally, the deal performed well. Shanghai Zendai is lower-rated than other property deals, and the pricing reflects investor expectations. The borrower is also satisfied with the outcomeö, says a source close...
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