Midday Commentary: Nokia Siemens bonds up 4 points; new European deals trading at slight premiums

By Paul A. Harris

Portland, Ore., April 16 - Euro-denominated bonds that were priced in late March by Nokia Siemens Networks Finance BV are trading at smart premiums, according to a London-based sellside source.

Bonds in both par-pricing tranches are trading at 105 bid, 105½ offered, the source added.

The €800 million two-part deal (B2/B+) was comprised of a €450 million tranche of 6¾% five-year notes and a €350 million tranche of 7 1/8% seven-year notes.

More recent deals are tending to trade at more modest premiums.

The new Unitymedia 5 5/8% notes due April 2023 were par ¼ bid on Tuesday, the sellsider said.

The deal came in at €350 million, which priced at par on April 11.

And the aggressively structured Orange Switzerland 9% PIK toggle notes due April 2019 (CCC+) were also up about ¼ point, the source said.

The €250 million issue priced at par on April 10.

Turning to the European primary market, France's Elior Finance & Co. SCA was scheduled to begin marketing its €300 million offering of seven-year senior secured notes (expected ratings B3/BB-) Tuesday in London.

Pricing is expected late in the week.

Joint bookrunner JPMorgan will bill and deliver. Credit Agricole CIB, HSBC and Nomura are also joint bookrunners.

No formal price talk has been heard so far, the London-based sellsider said.

And Czech Republic-based RPG Byty is on a roadshow for a €400 million offering of seven-year notes in a deal expected to play to high-yield and emerging markets investors (see related story in this issue).

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