Cable & Wireless prices eight-year note tight to IPT
October 5, 2018 |
Caribbean telecom prints $500m in 2026, non-call three paper to redeem 2019 and some 2022 debt
Caribbean telecom Cable & Wireless priced a $500m 2026, non-call three bond on Thursday, offering the eight-year paper to investors at par.
Leads launched initial price talk (IPT) on the new issuance between 7.5% and 7.625% on Wednesday evening before launching the paper on the tight end of IPT on Thursday afternoon, DCM bankers confirmed.
Despite improving market conditions, investor reception to emerging market credits on Thursday was a little soft, according to an investor focused on Caribbean credits.
"It is not easy to lower yields in this environment for non-IG names," he said.
Cable & Wireless' 6.875% 2027 paper was spotted at a yield of 384bp over US Treasuries on Thursday and was trading just below par when IPT levels for the 2026 bond were announced on Wednesday, DCM bankers said.
According to the investor, the bond sale implied a new issue concession between 20bp and 25bp, when based on the levels of Cable & Wireless' 2027s.
Proceeds are being lined up to retire £147m ($190m) in March 2019s and pay off a portion of the $750m Cable & Wireless has in 2022 debt.
BNP Paribas, Citi, Credit Suisse, Goldman Sachs, ING, RBC and Scotiabank worked on the new 2026 bond.
Cable & Wireless last tapped cross-border bondholders in August 2017, printing $700m in 6.875% 2027s. Bank of America Merrill Lynch, Barclays, BNP Paribas, Goldman Sachs and Scotiabank were joint bookrunners on the trade.