New York, Sept. 28 - Cathay United Bank Co. Ltd. (issuer rating: A3/A) sold a maiden offering of $500 million in 15-year bonds at 99.977 with a 5½% coupon to yield 5.503%, or 125 basis points over Treasuries, according to a market source.
The notes are non-callable for 10 years.
JP Morgan ran the Rule 144A/Regulation S transaction.
Cathay United Bank, based in Taipei, is the commercial banking unit of Cathay Financial Holding Co.
| Issuer: | Cathay United Bank Co. Ltd.
|
| Amount: | $500 million
|
| Issue: | Subordinated bonds
|
| Maturity: | Oct. 5, 2020
|
| Coupon: | 5½%
|
| Issue price: | 99.977
|
| Yield: | 5.503%
|
| Spread: | 125 basis points over Treasuries
|
| Call option: | Callable on Oct. 5, 2015 at par. It not called; the coupon will step up to six month Libor plus 180 basis points
|
| Pricing date: | Sept. 28
|
| Settlement date: | Oct. 5
|
| Bookrunner: | JP Morgan
|
| Ratings: | Moody's: A3
|
| Standard & Poor's: A
|
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