Korea's LG Electronics delays $600 million dual tranche bond offering

By Reshmi Basu

New York, May 12 - After completing its roadshow, LG Electronics will delay its $600 million offering of bonds (Baa3/BBB-) due to recent market volatility, according to sources.

The offering included $300 million of five-year bonds and $300 million of 10-year bonds.

One analyst note said there appeared to be reasonable demand for the five-year tranche, but there was not enough concession to move to the 10-year tranche. And with the high-yield Asian market under pressure, there was reluctance for the investment-grade name in the sector, said the analyst.

Citigroup, Credit Suisse First Boston, Lehman Brothers and Korea Development Bank were the bookrunners for the Rule 144A/Regulation S no registration rights issue.

The company is a Seoul, South Korea-based electronics maker.

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