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Guarantor: Fiat SpA
Rating: Baa1/BB+/BB+
Amount: Eu1.2bn
Maturity: 31 July 2012
Issue/re-offer price: 99.367
Coupon: 9%
Spread at re-offer: 755.6bp over the 4.25% 2012 OBL
Launched: Thursday 23 July
Payment date: 28 July
Joint books: BancaIMI, Barclays Capital, Calyon, UniCredit Group
Bookrunners' comment:
After the issuer's results on Wednesday there was a very good reaction from the market. The market tone on Thursday was also looking good, with strong housing data, employment statistics and Ford results.
I found that there was no concern from investors about a possible takeover of GM Europe, as Fiat are theoretically out of the running now. That gives investors more confidence about the role Fiat will play in the consolidation of the market, seeing as they've already taken on quite a lot with Chrysler and didn't want too much on their plate.
Saying that, there were some worries about the name: it's on watch negative, it does have a lot of noise around it and this is its first deal for two years.
We started out with official guidance of a yield of 9.25% to 9.5% after some very early sounding around 9.75%. For a high-yield name,...