By Cristal Cody
Tupelo, Miss., Oct. 9 – Italy (Baa3/BBB/BBB) priced a $7 billion three-tranche offering of global notes on Wednesday better than talk, according to a market source.
A $2.5 billion tranche of 2.375% five-year notes priced at a spread of mid-swaps plus 105 basis points, or Treasuries plus 103.5 bps.
The notes priced tighter than guidance in the mid-swaps plus 120 bps area.
Italy sold $2 billion of 2.875% 10-year notes at mid-swaps plus 150 bps, or a Treasuries plus 140.75 bps spread.
Price guidance on the notes due Oct. 17, 2029 was in the mid-swaps plus 160 bps area.
In the final tranche, $2.5 billion of 4% 30-year notes priced at a spread of mid-swaps plus 235 bps, or Treasuries plus 194.75 bps, compared to guidance in the mid-swaps plus 245 bps area.
Barclays, HSBC Securities (USA) Inc. and J.P. Morgan Securities LLC were the bookrunners.
The offering is Italy’s first dollar bond deal since 2010.
| Issuer: | Italy
|
| Amount: | $7 billion
|
| Description: | Global notes
|
| Bookrunners: | Barclays, HSBC Securities (USA) Inc. and J.P. Morgan Securities LLC
|
| Trade date: | Oct. 9
|
| Ratings: | Moody’s: Baa3
|
| S&P: BBB
|
| Fitch: BBB
|
| Marketing: | Fixed income investor calls
|
|
|
| Five-year notes
|
| Amount: | $2.5 billion
|
| Maturity: | Oct. 17, 2024
|
| Coupon: | 2.375%
|
| Spread: | Mid-swaps plus 105 bps, or Treasuries plus 103.5 bps
|
| Price talk: | Mid-swaps plus 120 bps area; initial talk at mid-swaps plus 125 bps-130 bps area
|
|
|
| 10-year notes
|
| Amount: | $2 billion
|
| Maturity: | Oct. 17, 2029
|
| Coupon: | 2.875%
|
| Spread: | Mid-swaps plus 150 bps, or Treasuries plus 140.75 bps
|
| Price talk: | Mid-swaps plus 160 bps area; initial talk at mid-swaps plus 165 bps-170 bps area
|
|
|
| 30-year notes
|
| Amount: | $2.5 billion
|
| Maturity: | Oct. 17, 2049
|
| Coupon: | 4%
|
| Spread: | Mid-swaps plus 235 bps, or Treasuries plus 194.75 bps
|
| Price talk: | Mid-swaps plus 245 bps area; initial talk at mid-swaps plus 250 bps-255 bps area
|
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