Sun Sage makes high yield debut

Korean auto parts manufacturer completes unusual structured transaction.

Sun Sage BV, a Netherlands-based non-operating holding company established to hold shares in Mando Corp, issued a $200 million 144a transaction on Friday. The five non-call three year deal was led by Deutsche Bank, JPMorgan and joint-lead Lehman Brothers.

Backed by a BBa2 rating, the deal was priced at par with a coupon of 8.25% to yield 535bp over Treasuries. This represented the outer end of a pre-marketed range between 8% and 8.25%. Fees came to 1.625%.

Many investors are said to have viewed the deal as a cheap, leveraged play on Hyundai Motors and Kia Motor, from whom the group derived75% of its sales in 2003. Hyundai,...

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