By Carol Dean
The European primary bond market saw an array of deals Wednesday
including a couple of high yield bond offerings as sentiment
remains upbeat ahead of the European Central Bank meeting Thursday
when further measures to ease the euro-zone's woes are expected to
be announced.
Here is a rundown of how the credit default swap market stands
and major deals hitting the market Wednesday.
CDS:
SovX: 6 bps tighter to Tuesday's close at 218.5.5/224.5 bps
iTraxx Europe: 1.4 bps tighter at 142/143 bps
iTraxx Crossover: 6 bps tighter at 562/565 bps
NEW ISSUES
France Telecom (FTE) is planning a 500 million euro ($629.5
million) bond, maturing March 2023, which is set to price at 80
basis points over midswaps.
Spanish telecommunications firm Telefonica SA (TEF) is planning
a EUR750 million, five-year bond. Initial price thoughts are in the
area of 510 basis points over midswaps.
SP Manweb PLC, an electricity distribution subsidiary of energy
provider Scottish Power, is planning a benchmark-size,
sterling-denominated bond at 280 to 285 basis points over
gilts.
German engineering and chemicals group Linde AG (LIN.XE) is
planning a benchmark-size, euro-denominated, eight-year bond.
Initial price guidance is in the area of 40 basis points over
midswaps.
German cable communications company Unitymedia plans to sell a
EUR650 million--initially EUR400 million--10-year, high-yield bond
at a yield in the area of 5.625%.
Packaging company Smurfit Kappa Group PLC (SK3.DB), has set
price guidance on its EUR400 million equivalent high yield bond in
euros and dollars. On a EUR200 million tranche, guidance is between
5.25% and 5.5%. On a $350 million tranche, guidance is between 5%
and 5.25%.
FINANCIALS
German agricultural development agency Rentenbank is planning a
benchmark-size, U.S. dollar-denominated, five-year bond. Initial
price guidance is 15-17 basis points over midswaps.
Wells Fargo & Co. (WFC) plans a sterling-denominated,
benchmark 17-year bond. Initial price thoughts are between 155 and
160 basis points over the reference gilt.
SOVEREIGNS
The Kingdom of Belgium has set pricing on its
dollar-denominated, benchmark-size, three-year bond at around the
low 50s basis points over midswaps.
Write to Carol Dean at carol.dean@dowjones.com