By Reshmi Basu
New York, May 11 - BBVA Bancomer SA sold a €600 million offering of 10-year subordinated tier II notes (A1//BBB+) at par to yield mid-swaps plus 45 basis points, according to a market source.
The deal came in line with guidance of 45 bps over mid-swaps.
The preferred, cumulative notes will be non-callable for five years. If the notes are not called, the fixed-rate coupon changes to floating rate and the coupon steps up by 100 bps.
On Thursday, the issuer placed a $500 million offering of 15-year subordinated notes (A1/BBB+) at par to yield Treasuries plus 135 bps. That deal priced inside of guidance, which was set at Treasuries plus 140 bps.
Proceeds from the two-part note offering will be used for general corporate purposes.
Credit Suisse, Deutsche Bank and BBVA were joint lead managers for the Rule 144A and Regulation S transactions, which were issued via the bank's Grand Cayman Island branch.
BBVA is Mexico City-based bank.
| Issuer: | BBVA Bancomer SA
|
| Amount: | €600 million
|
| Issue: | Tier II subordinated preferred, cumulative notes
|
| Maturity: | May 17, 2017
|
| Coupon: | 4.799%
|
| Issue price: | Par
|
| Yield: | 4.799%
|
| Spread: | Mid-swaps plus 45 bps
|
| Call option: | Non-callable for five years, if not called, coupon steps up by 100 bps
|
| Lead managers: | Credit Suisse, Deutsche Bank, BBVA
|
| Pricing date: | May 11
|
| Settlement date: | May 17
|
| Ratings: | Moody's: A1
|
| Fitch: BBB+
|
| Distribution: | Rule 144A/Regulation S
|
| Price guidance: | Mid-swaps plus 45 bps
|
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