Content area
Full Text
?
Rating: B1/BB- Amount: Eu650m Maturity: November 30, 2011 Issue price: 100.00 Coupon: 6.5% Spread at re-offer: 244bp over the 5% January 2012 Bund Launched: Wednesday November 19 Joint books: Barclays Capital, Deutsche Bank, HVB
Bookrunner's comment:
Barclays This deal was announced as part of its recapitalisation plan, which was exceptionally well received. ABB's share price went up, which is exceptional given that a rights issue was announced, and the company's sterling 2009 and euro 2008 bonds also reacted favourably.
The transaction was brought forward to before the rights issue was closed.
The company has done well in making both equity and bond holders comfortable with its strategy, particularly over the last 18 months in updating the investors.
So when this new bond issue was launched, we found that lots of questions had already been answered. We only did a two day roadshow, visiting Frankfurt and Paris on Monday and London on Tuesday.
ABB's transparency with its investors has clearly paid off very well.
Initial price talk was for a coupon range of 6.5%-6.75%, and we received...