The deal was the first transaction from a non-government linked company this year.
The new bonds priced at 260bp over 10-year Treasuries, versus 293.6bp in the initial deal. The bonds were trading on Monday at a bid of 248bp over Treasuries.
The bonds, rated A3/A-/A, came at a price of 99.246, a coupon of 6.25% and a yield of 6.353%.
ôThe initial issue was well received by investors. The bonds rallied strongly and as the market has continued to improve, we saw some follow-up demand from real money accounts wanting to place some pretty sizeable orders,ö says a source close to the deal.
Demand amounted to slightly more than $100 million.
Swire adopted a conservative approach last week in terms of size and pricing of the deal. ôIt was a pretty choppy market and equities were down quite significantly so they played it safe,ö says the source. ôBut this was the opportunity to raise an extra $100 million of bonds without any impact on secondaries.ö
ôIn theory, investors would be rattled by an unexpected tap,ö says a source on the buy-side. ôHowever, the deal came at a much tighter level on a spread basis and was well absorbed.ö
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