Chicago, Feb. 16 – United Utilities Water Finance plc priced €650 million of 3.75% 10.25-year guaranteed senior sustainability bonds on Friday (A3/BBB+/A-), according to a market source.
The bonds priced at 99.204 to yield 3.847%, or at mid-swaps plus 110 basis points. Books opened on initial talk in the 140 bps area. Guidance pulled price talk down to the 115 bps area.
Call protection includes a three-month par call.
BNP Paribas (billing and delivery), Barclays and Deutsche Bank were global coordinators. They were joined by active bookrunners Bank of China, JPMorgan and Mizuho.
Investor calls started on Wednesday.
The final order book was above €2.5 billion.
The guarantor is United Utilities Water Ltd.
Proceeds will be used for eligible projects under the issuer’s sustainable finance framework.
United Utilities provides regulated water and wastewater services in England.
| Issuer: | United Utilities Water Finance plc
|
| Guarantor: | United Utilities Water Ltd.
|
| Amount: | €650 million
|
| Issue: | Guaranteed senior sustainability bonds
|
| Maturity: | May 23, 2034
|
| Bookrunners: | BNP Paribas (billing and delivery), Barclays, Deutsche Bank, Bank of China, JPMorgan and Mizuho
|
| Coupon: | 3.75%
|
| Price: | 99.204
|
| Yield: | 3.847%
|
| Spread: | Mid-swaps plus 110 bps
|
| Call features: | Three-month par call
|
| Trade date: | Feb. 16
|
| Settlement date: | Feb. 23
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| Ratings: | Moody’s: A3
|
| S&P: BBB+
|
| Fitch: A-
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| Distribution: | Regulation S
|
| Price talk: | Mid-swaps plus 140 bps area; guided to 115 bps area
|
| Marketing: | Investor calls
|
| ISIN: | XS2771661357
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