China's Citic Pacific plans two-tranche offering of dollar notes

By Christine Van Dusen

Atlanta, April 6 - Hong Kong's Citic Pacific Ltd.'s planned notes will be dollar denominated and issued in two tranches (Ba1/BBB-/), a market source said.

The first tranche will include benchmark-sized perpetual notes with a fixed-rate coupon for the first five years, then from years five to 10 a fixed rate reset at the prevailing five-year Treasury spread. At year 10 and after, the fixed rate will be reset every five years at the prevailing five-year Treasury spread plus a one-time step-up margin of 100 basis points.

The second tranche will feature 10-year benchmark-sized senior notes.

HSBC and UBS are the bookrunners for the Regulation S-only transaction.

Proceeds will be used for general corporate purposes, including debt refinancing.

The notes are expected to price during the April 4 week.

Citic Pacific is a Hong Kong-based business conglomerate.

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