By Cristal Cody
Chicago, April 19 – CK Hutchison International 23 Ltd. priced $2.5 billion of notes in two parts (A2/A/A-) on Tuesday, according to a market source.
CK Hutchison Holdings Ltd. is guaranteeing the notes.
The deal broke into two $1.25 billion tranches.
The company priced 4¾% notes due 2028 with a spread of 110 basis points over Treasuries. Talk was in the 145 bps area.
The second tranche priced as 4 7/8% notes with a 10-year tenor. The spread priced at 135 bps over Treasuries against talk in the 170 bps area.
BofA Securities, Barclays, BNP Paribas, HSBC, JPMorgan, Mizuho and Standard Chartered Bank were bookrunners.
CK Hutchison Holdings plans to use the proceeds mainly to refinance debt and for general corporate purposes, according to Moody’s Investors Service.
The multinational conglomerate is based in Hong Kong with businesses including port operations and energy.
| Issuer: | CK Hutchison International 23 Ltd.
|
| Guarantor: | CK Hutchison Holdings Ltd.
|
| Amount: | $2.5 billion
|
| Issue: | Notes
|
| Bookrunners: | BofA Securities, Barclays, BNP Paribas, HSBC, JPMorgan, Mizuho and Standard Chartered Bank
|
| Trade date: | April 18
|
| Ratings: | Moody’s: A2
|
| S&P: A
|
| Fitch: A-
|
|
|
| Five-year notes
|
| Amount: | $1.25 billion
|
| Maturity: | April 21, 2028
|
| Coupon: | 4¾%
|
| Spread: | Treasuries plus 110 bps
|
| Price talk: | Treasuries plus 145 bps area
|
|
|
| 10-year notes
|
| Amount: | $1.25 billion
|
| Maturity: | April 21, 2033
|
| Coupon: | 4 7/8%
|
| Spread: | Treasuries plus 135 bps
|
| Price talk: | Treasuries plus 170 bps area
|
|
|
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