IFR Magazine - October 27, 2018

SAFEûNAMESûBREAKINGûUPvûONEûINVESTORûSAIDû
CITINGû'ENERALû%LECTRIC
0'ûHASûHADûSOMEûHIGH
PROlLEûSCUFmESûWITHû
ACTIVISTûINVESTORSûINCLUDINGû.ELSONû0ELTZû
FOUNDINGûPARTNERûOFû4RADEû&UNDû-ANAGEMENTû
WHOûISûNOWûONûTHEûBOARDûOFûTHEûCOMPANY
h3TILLûTHEREûISûAûLOTûOFûDEMANDûFORûHIGH
QUALITYûNAMESû7HATEVERûYOUûTHINKûOFûTHEû
BREAK
UPûRISKûFORû0'ûITSûSTILLûHIGHLYûRATEDvû
ADDEDûTHEûINVESTOR
The company was last in the euro market
ALMOSTûEXACTLYûAûYEARûAGOûWHENûITûBROUGHTûAû
€500m no-grow seven-year and a no-grow
õMû
YEAR

SCHLUMBERGER PERSEVERES IN ROCKY
MARKET

SCHLUMBERGER held its nose and dived into a
ROCKYûMARKETûONû&RIDAYûBRINGINGûAûõMû
LONGûSEVEN
YEARûATûMID
SWAPSûPLUSûBP
4HEûOILlELDûSERVICESûCOMPANYû!!!
ûPULLEDû
THEûTRIGGERûONûTHEûDEALûDESPITEûAûLOWERû%UROPEANû
OPENûFORûEQUITIESûANDûWIDERûCREDITûINDICES
It had been monitoring the market and
COULDûHAVEûDELAYEDûFURTHERûBUTûASûAûLOWER
BETAûNAMEûWITHûAûFREEûRUNûATûTHEûMARKETû
DECIDEDûITûWASûBETTERûNOTûTOûWAIT
h7AITINGûCARRIESûSOûMUCHûPOTENTIALû
DOWNSIDEûRISKûWITHûTHEû53ûMIDTERMû
ELECTIONSû)TALYûEARNINGSûANDûPOTENTIALLYû
MOREûSUPPLYûTOûCOMEvûAûLEADûSAID
4HEûDECISIONûLARGELYûPAIDûOFFû)NVESTORSû
PLACEDûOVERûõBNûINûORDERSûFORûTHEûBONDûLUREDû
BYûAûCHUNKYûSPREADûATûINITIALûPRICEûTHOUGHTS
3CHLUMBERGERûVIAû3CHLUMBERGERû&INANCEû
&RANCEûAPPROACHEDûTHEûBUYSIDEûWITHû)04SûOFû
MID
SWAPSûPLUSûBPûAREAû2EFERENCINGû
BONDSûFROMû4OTALûANDû3HELLûLEADSûSAWûFAIRû
VALUEûINûTHEûBP
BPûREGION
h)TûWASûQUITEûANûATTRACTIVEû)04ûBUTûTHATSû
what you need to do in this market -
especially if it’s a name that hasn’t been in
THEûMARKETûFORûAûLONGûTIMEvûTHEûLEADûSAID
Schlumberger last issued a euro bond in the
PUBLICûMARKETûINûûACCORDINGûTOûTHEûBANKER
Demand allowed price progression of
BPûLEAVINGûINVESTORSûWITHûAûSTILL
HEALTHYû
lNALûNEWûISSUEûPREMIUMûOFûBP
BP
Schlumberger jumped into the market
AFTERûITSûRESULTSûLASTû&RIDAYû)TûREPORTEDûAû
SLIGHTûPROlTûBEATûBUTûCAUTIONEDûTHATû.ORTHû
!MERICANûGROWTHûWOULDûSLOWûDUEûTOû
transportation bottlenecks and hurt results
NEXTûQUARTERû2EUTERSû.EWSûREPORTED
Bookrunners were BNP ParibasûMUFG and
Societe Generale

THREE TRIPLE B BORROWERS JOIN
PIPELINE

Three Triple B borrowers have joined the
EUROûCORPORATEûBONDûPIPELINE
7AREHOUSEûCOMPANYûLOGICOR FINANCINGûRATEDû
"""ûBYû30 ûHASûMANDATEDûMorgan Stanley and

JP MorganûASûGLOBALûCOORDINATORSûANDûBank of

China BNP ParibasûGoldman Sachs JP Morgan

Morgan Stanley and UBS to act as joint

BOOKRUNNERSûANDûARRANGEûAûSERIESûOFû%UROPEANû

INVESTORûMEETINGSûCOMMENCINGû/CTOBERû

)NûWHATûWOULDûBEûITSûDEBUTû,OGICORûISû

TARGETINGûAûMULTI

TRANCHEûlXED

RATEû

benchmark with expected maturities of

FOURûûANDûûYEARS

Swedish telecoms operator TELE2ûRATEDû

"""ûBYû30ûHASûMANDATEDûCitiGROUPûNordea

and SEB TOûARRANGEûAûSERIESûOFûlXEDûINCOMEû

INVESTORûMEETINGSûWHICHûWEREûHELDûINû

3WEDENûONû4HURSDAYû/CTOBERûû-OREû

MEETINGSûACROSSû%UROPEûWILLûCOMMENCEûONû

/CTOBERûûAHEADûOFûANûEXPECTEDûDUAL

tranche benchmark transaction with

MATURITIESûOFûFOURûTOûûYEARS

The company is also exploring the

possibilities for a Swedish krona-denominated

TRANSACTIONûWHICHûMAYûFOLLOWûATûAûLATERûSTAGE

CELANESE US HOLDINGSûHELDûGLOBALûlXEDû

INCOMEûINVESTORûCALLSûONû7EDNESDAYûFORûAû

POTENTIALûõMûlXED

RATEûOFFERINGûWITHûAû

LONGûEIGHT

YEARû-ARCHû    ûMATURITY

Bank of America Merrill Lynch Deutsche Bank

and JP Morgan ARRANGEDûTHEûCALLS

The securities are expected to be jointly

and severally guaranteed on a senior basis

by Celanese Corporation and certain

SUBSIDIARIESûOFûTHEûISSUERûANDûAREûEXPECTEDû

TOûBEûRATEDû"AAûPOSITIVE  ûANDû"""

ûSTABLE    û

BYû-OODYSûANDû30ûRESPECTIVELY

Celanese is a global technology and

SPECIALTYûMATERIALSûCOMPANY

NON-CORE CURRENCIES

KIWI PROPERTY PLANS SEVEN-YEAR NOTE

KIWI PROPERTY GROUPûRATEDû"""û30    ûHASû

mandated ANZ Bank New ZealandûDeutsche

Craigs and Westpac as joint lead managers for

AûSEVEN

YEARûlXED

RATEûSENIORûSECUREDûRETAILû

NOTEûOFFERûEXPECTEDûTOûOPENûINûTHEûWEEKû

COMMENCINGû/CTOBERû

,ASTû$ECEMBERû+IWIû0ROPERTYû'ROUPûSOLDû

Aû.:Mû53M   ûûSEVEN

YEARû

SENIORûSECUREDûRETAILûNOTEûPRICEDûATûMID

SWAPSûPLUSûBP

FIG

US DOLLARS

SLA SEEKS PERMISSION TO SWITCH TIER 2

FEATURES

STANDARD LIFE ABERDEEN announced a consent

SOLICITATIONûONûITSû53Mûû

.#û4IERûûWITHûTHEûAIMûOFûTWEAKINGû

its features to optimise treatment under the

COMPANYSûNEWûREGULATORYûFRAMEWORK

)TûISûTHEûSECONDûTIMEûTHISûMONTHû3,!ûHASû

used liability management to get its house

in order after the sale of Standard Life

!SSURANCEûTOû0HOENIXû'ROUPû(OLDINGS

&OLLOWINGûTHEûSALEûWHICHûCOMPLETEDûONû

!UGUSTûûTHEûCOMPANYûISûFOCUSINGûONûPUREû

ASSETûMANAGEMENTûACTIVITYû!SûSUCHûITûISûNOû

longer supervised under Solvency II insurance

REGULATIONûBUTûRATHERûONûAû#2$û)6ûBASIS

Its outstanding Solvency II debt has no

REGULATORYûVALUEûUNDERû#2$û)6ûANDûITSû

CAPITALûNEEDûHASûALSOûDROPPEDûSIGNIlCANTLYû

Its estimated CRD IV requirements are

aBNnaBN

3,!ûHASûTHEREFOREûINVITEDûBONDHOLDERSûTOû

vote in favour of an extraordinary resolution

THATûWILLûAMONGûOTHERûTHINGSûREMOVEû

certain redundant Solvency II features such

as interest deferability and align the

MATURITYûDATEûWITHûTHEûlRSTûCALLûDATE

“The security is not an impediment to the

DISPOSALûOFû3TANDARDû,IFEû!SSURANCEûTHEû

proposed transaction is motivated to

optimise quantum and regulatory treatment

OFûTHEûNOTESvûTHEûISSUERûSAIDûINûANû

ACCOMPANYINGûINVESTORûPRESENTATION

Votes prior to the early voting deadline of

.OVEMBERûûWILLûRECEIVEûANûEARLYûCONSENTûFEEû

OFûû4HEûLATEûCONSENTûFEEûISûûANDûTHEû

lNALûVOTINGûDEADLINEûISû.OVEMBERû

)FûTHEûCHANGESûAREûAGREEDûTHEûNOTESûAREû

EXPECTEDûTOûBEûUPGRADEDûONEûNOTCHûBYû30û

TOû"""ûANDûMAINTAINûTHEIRû-OODYSûRATINGû

OFû"AAû"OTHûAGENCIESûCONSIDERûTHEûCHANGESû

POSITIVEûFORûHOLDERSûGIVENûTHEYûWILLûPROVIDEû

improved visibility and certainty on future

INTERESTûPAYMENTS

BarclaysûJP Morgan and Merrill Lynch

InternationalûAREûSOLICITATIONûAGENTS

The announcement came just a day after

3,!ûANNOUNCEDûTHEûRESULTSûOFûITSûTENDERûTOû

RETIREûaMûOFûSUBORDINATEDûSTERLINGûBONDSû

&OLLOWINGûTHEûCOMPLETIONûOFûTHATûEXERCISEû

its outstanding debt will have dropped from

aBNûTOûaBN

)TûWASûTARGETINGûTHEûaMûû

perpetual sub at 50bp over the July 2027 Gilt

ANDûTHEûaMûûMUTUALûASSURANCEû

CAPITALûSECURITIESû-!#S    ûATûBPûOVERûTHEû

-ARCHûû'ILTû!ROUNDûaMû    ûOFû

THEûPERPSûANDûaMû   ûOFûTHEû-!#Sû

WEREûVALIDLYûTENDERED

"ONDHOLDERSûALSOûAPPROVEDû3,!SûREQUESTû

TOûTWEAKûTHEûSECURITIESû4#SûTOûENABLEûITûTOû

TAKEûOUTûANYûREMAININGûBONDS

The exercise has also resolved an

AWKWARDûARRANGEMENTûREQUIRINGû3,!ûTOûPOSTû

COLLATERALûTOû0HOENIXûSINCEûTHEûTWOûBONDSûINû

question were guaranteed by Standard Life

!SSURANCEûTHEûENTITYûOFmOADEDûTOû0HOENIXû

The tender was a condition of the sale of

3,!,