By Reshmi Basu
New York, Jan. 18 - Bank TuranAlem, via its special-purpose vehicle BTA Finance Luxembourg SA, sold $400 million of hybrid tier 1 perpetual preferred securities (Baa3/B-/B+) at par to yield 8¼%, according to a market source.
The deal, increased from $150 million, priced at the tight end of revised price guidance, which was set at 8¼% to 8½%.
The issue is callable after 10 years. If not called, the coupon becomes a floating rate at six-month Libor plus 1.5 times the original swap spread when the bond is priced or six-month Libor plus 516.75 basis points.
Credit Suisse First Boston and ING managed the sale.
Bank TuranAlem is a financial institution with headquarters in Almaty, Kazakhstan.
| Issuer: | BTA Finance Luxembourg SA
|
| Amount: | $400 million (increased from $150 million)
|
| Issue: | Hybrid tier 1 perpetual preferred securities
|
| Maturity: | Perpetual
|
| Coupon: | 8¼%
|
| Issue price: | Par
|
| Yield: | 8¼%
|
| Spread: | 344.5 basis points over Treasuries
|
| Call options: | Non-callable for 10 years; if not called, coupon steps up to floating-rate note at Libor plus 516.75 basis points
|
| Issue date: | Jan. 18
|
| Settlement date: | Jan. 25
|
| Lead managers: | Credit Suisse, ING
|
| Ratings: | Moody's: Baa3
|
| Standard & Poor's: B-
|
| Fitch: B+
|
| Revised price guidance: | 8¼% to 8½%
|
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