By Rebecca Melvin
New York, Aug. 3 – Eskom Holdings SOC Ltd. priced $1.5 billion of 10-year notes in dual tranches at par, a syndicate source said on Friday.
The $1 billion 10-year notes, which are guaranteed by the South African government, (expected ratings: Baa3/BB) priced at par to yield 6.35%, which was tight to initial price talk for a yield of 6½% to 6 5/8%.
The $500 million tranche of 10-year notes, which are not guaranteed by the government, priced at par to yield 8.45%. Those notes had been talked at 8 5/8% to 8¾%.
Both tranches saw strong demand and saw subscription orders of $3.7 billion and $1.6 billion, respectively.
Barclays, JPMorgan, Standard Bank and ABSA Bank were bookrunners for the Rule 144A and Regulation S deal.
Eskom Holdings is a state-owned electricity provider based in Johannesburg, South Africa.
| Issuer: | Eskom Holdings SOC Ltd.
|
| Amount: | $1.5 billion
|
| Description: | Notes
|
| Bookrunners: | Barclays, JPMorgan, Standard Bank and ABSA Bank
|
| Trade date: | Aug. 2
|
| Settlement date: | Aug. 10
|
| Distribution: | Rule 144A and Regulation S
|
|
|
| 10-year guaranteed notes
|
| Amount: | $1 billion
|
| Maturity: | Aug. 10, 2028
|
| Coupon: | 6.35%
|
| Price: | Par
|
| Yield: | 6.35%
|
| Expected ratings: Moody’s: Baa3
|
| S&P: BB
|
| Price talk: | 6½% to 6 5/8%
|
|
|
| 10-year non-guaranteed notes
|
| Amount: | $500 million
|
| Maturity: | Aug. 10, 2028
|
| Coupon: | 8.45%
|
| Price: | Par
|
| Yield: | 8.45%
|
| Price talk: | 8 5/8% to 8¾%
|
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