By Reshmi Basu
New York, Dec. 7 - Singapore's United Overseas Bank issued $500 million of hybrid tier I perpetual preference shares (A2/A-) at par to yield 5.796% or 131 basis points over Treasuries.
The deal came towards the wide end of talk, which put it pricing at 73 to 75 bps over mid-swaps. On that basis, the preference shares priced at a spread of 74.5 bps.
Deutsche Bank was the global coordinator. Credit Suisse First Boston and JP Morgan were joint lead managers for the Rule 144A/Regulation S offering.
The notes come with 10 years of call protection and a coupon step-up in year 10.
| Issuer: | United Overseas Bank
|
| Amount: | $500 million
|
| Issue: | Hybrid tier I perpetual preference shares
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| Maturity: | Perpetual
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| Dividend: | 5.796%
|
| Issue price: | Par
|
| Spread: | 131 basis points over Treasuries or 74.5 bps over mid-swaps
|
| Call option: | Non-callable for 10 years; first call date on March 15, 2016, coupon steps up by 100 bps to 174.5 bps over Libor
|
| Make-whole call option: | 37.5 basis points
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| Pricing date: | Dec. 7
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| Settlement date: | Dec. 13
|
| Global coordinator: | Deutsche Bank
|
| Lead managers: | Credit Suisse First Boston and JP Morgan
|
| Ratings: | Moody's: A2
|
| Standard & Poor's: A-
|
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