The Baa3/BBB rated group re-opened its $100 million 7.625% June 2008 deal yesterday (Tuesday) about five basis points through the offer level of its secondary market spreads. Led by JPMorgan, the company doubled the size of its outstanding deal, with a $100 million transaction re-opened at 106.544% to yield 195bp over five-year Treasuries, or 174bp over the interpolated Treasury curve.
At the time of pricing, bankers say that the group's outstanding deal was being quoted at about 200bp over, having moved very little since roadshows began a week ago. Tight pricing was attributed to the small size of the deal and the fact that it offers a relatively attractive yield pick up for an investment grade BBB-rated Korean credit.
By contrast, SK Corp, which has a one-notch lower rating from Standard & Poor's, saw its 7.5% May 2006 bond trading at 148bp over five-year Treasuries or 170bp over the interpolated curve.
Books for the new deal closed at the $240 million mark with participation by 25 accounts. Geographically about 95% of demand came from Asia and 5% from Europe. The Asian demand further split down to 40% Korea, 30% Hong Kong and 30% Singapore.
Only about 25% of the new investor group had participated in the original deal launched last June, which also attracted 25 accounts and had a geographical split of 60% Asia, 20% Europe and 20% US.
