By Aaron Hochman-Zimmerman
New York, May 8 - Korea Railroad Corp. (A2/A) priced $300 million of five-year senior unsecured bonds at mid-swaps plus 160 basis points, according to a market source.
The deal came at the tight end of talk for a spread of 160 bps to 170 bps over mid-swaps.
Compared to Treasuries, the spread was 237.7 bps.
The 5 3/8% notes priced at 99.637 to yield 5.459%, the source said.
Citigroup, HSBC and Morgan Stanley are bookrunners for the Rule 144A and Regulation S deal.
There is a change of control put at par if the government ceases to own and control more than 51% of Korail stock.
Korail is a Daejong, South Korea-based government railroad operator.
| Issuer: | Korea Railroad Corp.
|
| Amount: | $300 million
|
| Issue: | Five-year senior unsecured bonds
|
| Maturity: | May 15, 2013
|
| Coupon: | 5 3/8%
|
| Price: | 99.637
|
| Yield: | 5.459%
|
| Spread: | Mid-swaps plus 160 bps, Treasuries plus 237.7 bps
|
| Bookrunners: | Citigroup, HSBC, Morgan Stanley
|
| Pricing date: | May 8
|
| Settlement date: | May 15
|
| Ratings: | Moody's: A2
|
| Standard & Poor's: A
|
| Price talk: | Mid-swaps plus 160 bps to 170 bps
|
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