By Rebecca Melvin
New York, Oct. 3 – Sabic Capital II BV, a subsidiary of Saudi Arabia's Saudi Basic Industries Corp., priced $2 billion of five- and 10-year notes (A1/A-) on Tuesday, according to a syndicate source.
The $1 billion of 4% five-year notes priced at 99.592 for a reoffered yield of 4.091%, or Treasuries plus 115 basis points. That pricing was tightened from guidance of Treasuries plus 125 bps and initial talk in the area of Treasuries plus 140 bps.
The $1 billion of 4˝% 10-year notes priced at 99.174 for a reoffered yield of 4.604%, or Treasuries plus 155 bps. That pricing was tight compared to guidance of Treasuries plus 165 bps and initial price talk in the area of Treasuries plus 180 bps.
Combined order books at the time of the first guidance update was about $5.5 billion, with a skew to the 10-year tranche.
BNP Paribas and Citigroup were global coordinators and joint lead managers together with HSBC, MUFG and Standard Chartered Bank for the Rule 144A and Regulation S deal
Sabic is a Riyadh-based manufacturer of chemicals, fertilizers, plastics and metals.
| Issuer: | Sabic Capital II BV
|
| Guarantor: | Saudi Basic Industries Corp.
|
| Description: | Senior unsecured notes
|
| Total amount: | $2 billion
|
| Joint bookrunners: | BNP Paribas and Citigroup (global coordinators), with HSBC, MUFG and Standard Chartered Bank
|
| Pricing date: | Oct. 2
|
| Settlement date: | Oct. 10
|
| Expected ratings: | Moody’s: A1
|
| S&P: A-
|
| Distribution: | Rule 144A and Regulation S
|
|
|
| 2023 notes
|
| Amount: | $1 billion
|
| Maturity: | Oct. 10, 2023
|
| Coupon: | 4%
|
| Price: | 99.592
|
| Yield: | 4.091%
|
| Spread: | 115 bps over Treasuries
|
| Price talk: | Guided to 125 bps over Treasuries from initial talk at 140 bps over Treasuries
|
|
|
| 2028 notes
|
| Amount: | $1 billion
|
| Maturity: | Oct. 10, 2028
|
| Coupon: | 4˝%
|
| Price: | 99.174
|
| Yield: | 4.604%
|
| Spread: | 155 bps over Treasuries
|
| Price talk: | Guided to 165 bps over Treasuries from initial talk at 180 bps over Treasuries
|
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