By Paul A. Harris
St. Louis, May 9 - Leighton Finance International Ltd. priced a $110 million issue of non-callable five-year senior unsecured fixed-rate eurobonds at par on Tuesday to yield 7 7/8%, according to an informed source.
The yield came inside of the 7.97% area price talk, which was calculated based upon the preliminary guidance of mid-swaps plus 250 bps area, according to the source.
Commonwealth Bank of Australia and HSBC were joint lead managers for the Regulation S registered issue.
The issuer is an Indonesia-based special purpose vehicle for Leighton Holdings Ltd., the largest project management and contracting group in Australia.
The notes are guaranteed jointly by subsidiaries PT Thiess Contractors Indonesia and PT Leighton Contractors Indonesia.
Standard & Poor's assigns its BB issuer rating to Leighton Finance.
According to an informed source, the deal was more than five times oversubscribed with more than 50 accounts in the book. In terms of geographical distribution Singapore took 48%, Hong Kong 35%, Australia 5% the rest of Asia 2% and Europe took 10%.
By investor type, banks bought 54%, fund managers and insurance funds took 42% and others took 4%.
| Issuer: | Leighton Finance International Ltd.
|
| Amount: | $110 million
|
| Maturity: | May 16, 2011
|
| Security description: | Senior unsecured fixed-rate eurobonds
|
| Joint lead managers: | Commonwealth Bank of Australia, HSBC
|
| Coupon: | 7 7/8%
|
| Price: | Par
|
| Yield: | 7 7/8%
|
| Spread: | 286 bps
|
| Call protection: | Non-callable
|
| Trade date: | May 9
|
| Settlement date: | May 16
|
| Issuer rating: | Standard & Poor's: BB
|
| Distribution: | Regulation S
|
| Price talk: | 7.97% area (calculated based upon preliminary guidance of mid-swaps plus 250 bps area)
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