By Paul A. Harris
St. Louis, Sept. 13 - Shinhan Bank priced a $350 million issue of 6.819% 30-year hybrid tier 1 securities (Baa2/BBB/BBB+) to yield 205 basis points over Treasuries, an informed source told Prospect News on Wednesday.
That spread came at the wide end of the Treasuries plus 200 to 205 basis points price talk.
The Seoul, Korea-based private retail bank issued the notes at a par dollar price.
Barclays Capital, ABN Amro, JP Morgan and Morgan Stanley were joint bookrunners for the Regulation S issue.
The notes become callable in 10 years; if they are not called at that time, the coupon steps up to three month Libor plus 252 basis points.
| Issuer: | Shinhan Bank
|
| Amount: | $350 million
|
| Maturity: | 30 years
|
| Security description: | Hybrid tier 1 securities
|
| Bookrunners: | Barclays Capital, ABN Amro, JP Morgan, Morgan Stanley
|
| Coupon: | 6.819%
|
| Issue price: | Par
|
| Yield: | 6.819%
|
| Spread to Treasuries: | 205 bps
|
| Call provision: | Callable on Sept. 20, 2016; if not called, coupon steps up to three-month Libor plus 252 bps
|
| Hedge ratio: | 0.91
|
| Settlement date: | Sept. 20
|
| Ratings: | Moody's: Baa2
|
| Standard & Poor's: BBB
|
| Fitch: BBB+
|
| Distribution: | Regulation S
|
| Listing: | Singapore Stock Exchange
|
| Price talk: | Treasuries plus 200 to 205 bps
|
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