Hutchison Whampoa : Seeks To Sell Dollar Bond To Yield In 'Low 6%' Area
05/01/2012| 11:26pm US/Eastern
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-- Hutchison Whampoa plans subordinated perpetual dollar bond.
-- Seeks to price benchmark offering to yield in low 6% area.
(Adds yield guidance in the first paragraph, rebate detail in the second paragraph and context in the fifth paragraph.)
By Natasha Brereton-Fukui and Carol Chan
Of
Hong Kong conglomerate Hutchison Whampoa Ltd. (0013.HK) is seeking to price a benchmark dollar subordinated perpetual bond this week to yield in the low 6% area, a person familiar with the matter told Dow Jones Newswires Wednesday.
Private banks would get a 25-cent rebate, the person said.
The bond would be callable after five years and feature a 100-basis-point step-up from year 10.
Goldman Sachs and HSBC are joint bookrunners on the planned Rule 144A/Reg S deal, which is provisionally rated Baa2 by Moody's Investors Service and triple-B by Fitch Ratings and Standard & Poor's Ratings Services. It will qualify for 50% equity credit from the three rating firms.
Hutchison is one of Hong Kong's biggest companies, with businesses ranging from ports to property to telecoms. Its bonds are often used as a benchmark for other deals in the region.
In January, it sold a two-tranche dollar bond, which it tapped for a total value of $2.5 billion.
-By Natasha Brereton-Fukui and Carol Chan, Dow Jones Newswires; +65-6415-4044; natasha.brereton-fukui@dowjones.com
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