By Reshmi Basu
New York, June 3 - Korea Exchange Bank priced an upsized offering of $500 million 10-year subordinated bonds (Baa3/BB+/BB+) at 99.264 with a 5% coupon to yield mid-swaps plus 110 basis points, according to a market source.
The deal, increased from $200 million, came in tighter than price guidance, which had been set at 115 to 120 basis points more than mid-swaps.
The lower-tier two bonds are non-callable for five-years. If not called, the coupon will step up to the prevailing five-year U.S. Treasury plus 1.5 times the spread at pricing.
Citigroup and HSBC ran the Rule 144A/Regulation S deal for the Seoul-based bank.
The issue had been postponed due to market volatility after Korea Exchange completed its roadshow in April for a proposed offering of $300 million of 10-year bonds.
| Issuer: | Korea Exchange Bank
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| Amount: | $500 million
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| Issue: | Lower-tier two subordinated
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| Maturity: | June 10, 2015
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| Coupon: | 5%
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| Issue price: | 99.264
|
| Spread: | Mid-swaps plus 110 basis points; five-year Treasuries plus 151 bps
|
| Call option: | Callable on June 10, 2010, coupon will step up to prevailing five-year Treasury plus 1.5 times the spread of pricing
|
| Pricing date: | June 3
|
| Settlement date: | June 10
|
| Ratings: | Moody's: Baa3
|
| Standard & Poor's: BB+
|
| Fitch: BB+
|
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