By Andrea Heisinger
New York, Sept. 16 - Asciano Finance Ltd. sold an upsized $1 billion of notes (Baa3/BBB-/) in two tranches on Thursday, a source away from the sale said.
The size was increased from a planned $750 million. The sale was done after a roadshow the previous week.
A $400 million tranche of 3.125% five-year notes priced at 99.848 to yield 3.158% with a spread of Treasuries plus 170 basis points. The notes are callable at a make-whole amount of Treasuries plus 25 bps.
A $600 million tranche of 4.625% 10-year notes priced at 99.77 to yield 4.654% with a spread of 190 bps over Treasuries. The notes have a make-whole call at Treasuries plus 30 bps.
The bonds were priced under Rule 144A.
J.P. Morgan Securities, Morgan Stanley & Co. Inc. and RBS Securities were the bookrunners.
Proceeds will be partly used to help fund the planned expansion of the company's coal-hauling business.
The rail and port operator is based in Melbourne, Australia.
| Issuer: | Asciano Finance Ltd.
|
| Issue: | Senior note
|
| Amount: | $1 billion, upsized from $750 million
|
| Bookrunners: | Morgan Stanley & Co. Inc., J.P. Morgan Securities, RBS Securities
|
| Distribution: | Rule 144A
|
| Trade date: | Sept. 16
|
| Settlement date: | Sept. 23
|
| Ratings: | Moody's: Baa3
|
| Standard & Poor's: BBB-
|
|
|
| Five-year notes
|
| Amount: | $400 million
|
| Maturity: | Sept. 23, 2015
|
| Coupon: | 3.125%
|
| Price: | 99.848
|
| Yield: | 3.158%
|
| Spread: | Treasuries plus 170 bps
|
| Call: | Make-whole at Treasuries plus 25 bps
|
|
|
| 10-year notes
|
| Amount: | $600 million
|
| Maturity: | Sept. 23, 2020
|
| Coupon: | 4.625%
|
| Price: | 99.77
|
| Yield: | 4.654%
|
| Spread: | Treasuries plus 190 bps
|
| Call: | Make-whole at Treasuries plus 30 bps
|
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