New Millicom notes trade up on debut; Turkey bond spreads tighten on reduced tensions

By Rebecca Melvin

New York, Oct. 12 – The new EM-focused Millicom International Cellular SA 6 5/8% senior notes due October 2026 (Ba2//BB+) were 101 1/8 bid 101 3/8 offered on Friday.

The $500 million issue, which priced at par on Thursday, traded above par out of the box, an investor said, adding that the new Millicom paper was no doubt benefitting from Friday morning's overall market strength.

New issuance was low this past week, with only a handful of new deals pricing. Despite the volatility Luxembourg-based Millicom priced $500 million of eight-year notes at par to yield 6 5/8%, and the notes were higher by more than a point in the gray market, which was indicated at 101 bid, 101.125 ask, the source said.

Final talk came tight to earlier price talk in the 6 7/8% area and at the wide end of initial guidance in the mid 6% area. The Luxembourg-based company operates in Latin America and Africa and plans to use proceeds of the new issue to help fund its acquisition of an 80% stake in Panama-based company Cable Onda.

In secondary market action, Turkey’s sovereign bond spreads tightened by about 20 basis points early Friday after news that a Turkish court has lifted the house arrest of an American pastor.

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