By Cristal Cody
Chicago, July 29 – Posco sold $1 billion of notes in two parts (Baa1/A-) on Thursday, according to a market source.
The company priced $700 million of 4 3/8% notes with a three-year tenor at a 160 basis points spread over Treasuries. Price talk was in the 190 bps area.
The company also priced $300 million of 4˝% notes with a five-year tenor at a 185 bps spread to Treasuries. Initial price talk was in the 210 bps area.
BofA Securities, BNP Paribas, Citigroup, HSBC and Standard Chartered Bank were the bookrunners for the Rule 144A and Regulation S deal.
Fixed income investor calls were held Wednesday.
Proceeds will be used for general corporate purposes, including refinancing maturing date, according to S&P Global Ratings.
Posco is a steel maker based in Pohang, South Korea.
| Issuer: | Posco
|
| Amount: | $1 billion
|
| Issue: | Notes
|
| Bookrunners: | BofA Securities, BNP Paribas, Citigroup, HSBC and Standard Chartered Bank
|
| Trade date: | July 29
|
| Ratings: | Moody’s: Baa1
|
| S&P: A-
|
| Distribution: | Rule 144A and Regulation S
|
| Marketing: | Investor calls
|
|
|
| Three-year notes
|
| Amount: | $700 million
|
| Maturity: | Aug. 4, 2025
|
| Coupon: | 4 3/8%
|
| Spread: | Treasuries plus 160 bps
|
| Price talk: | Treasuries plus 190 bps area
|
|
|
| Five-year notes
|
| Amount: | $300 million
|
| Maturity: | Aug. 4, 2027
|
| Coupon: | 4˝%
|
| Spread: | Treasuries plus 185 bps
|
| Price talk: | Treasuries plus 210 bps area
|
|
|
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