New Issue: Nigeria sells $2.87 billion bonds in seven-, 12- and 30-year tranches

By Paul A. Harris

Portland, Ore., Nov. 14 – Federal Republic of Nigeria priced $2,868,352,000 of global bonds (B2/B/B+) in three tranches on Wednesday, according to a market source.

The deal included $1,118,352,000 of seven-year notes that priced at par to yield 7 5/8%. The yield printed at the tight end of yield talk in the 7¾% area and inside of initial guidance in the 7 7/8% area.

A $1 billion tranche of 8.747% 12-year notes priced at par to yield 8¾%. The yield printed in the middle of yield talk in the 8¾% area, and tight to initial guidance in the 7 7/8% area.

The long tranche came in the form of a $750 million issue of 9.248% 30-year notes, which priced at par to yield 9¼%. The yield printed at the tight end of yield talk in the 9 3/8% area and tighter than the 9 3/8% to 9½% initial guidance.

The deal played to order books that were 3.5-times to four-times oversubscribed, the source said.

Citigroup and Standard Chartered Bank were the joint bookrunners.

Issuer:	Federal Republic of Nigeria
Amount:	$2,868,352,000
Securities:	Global bonds
Bookrunners:	Citigroup, Standard Chartered Bank
Trade date:	Nov. 14
Settlement date:	Nov. 21
Ratings:	Moody's: B2
	S&P: B
	Fitch: B+
Distribution:	Rule 144A and Regulation S
Seven-year tranche
Amount:	$1,118,352,000
Maturity:	Seven years
Coupon:	7 5/8%
Price:	Par
Yield:	7 5/8%
Price talk:	7¾% area
12-year tranche
Amount:	$1 billion
Maturity:	12 years
Coupon:	8.747%
Price:	Par
Yield:	8¾%
Price talk:	8¾% area
30-year tranche
Amount:	$750 million
Maturity:	30 years
Coupon:	9.248%
Price:	Par
Yield:	9¼%
Price talk:	9 3/8% area

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