UPDATE 1-ECB stimulus helps LeasePlan set tight price talk on LBO bond
(Updates with context, reaction)
By Robert Smith
LONDON, March 10 (IFR) - LeasePlan has set price talk on its 1.55bn-equivalent LBO bond tighter than whispers, aided by the rally across credit after the European Central Bank's freshly announced stimulus measures.
The Dutch vehicle-leasing company took advantage of a more stable market backdrop to revive the three-tranche holding company bond on Wednesday, relaunching it just one month after a sharp sell-off forced underwriters to pull the deal.
Leads set price talk on an up to 1.25bn five-year non-call two-year tranche at 7% yield area on Thursday afternoon, while talk on a minimum US$400m five-year non-call two-year tranche is at 7.50% yield area.
LeasePlan has dropped a planned euro seven-year non-call three-year in favour of a larger euro five-year non-call two-year.
Books close at 4.15pm for pricing thereafter. The deal was originally scheduled to price on Friday.
Two investors told IFR on Wednesday that price whispers on the deal were at 7.25%-7.50% on the euro 5NC2 and at 7.75%-8.00% on both the euro 7NC3 and dollar 5NC2.
But the announcement by the ECB on Thursday that it would expand its asset purchase programme to include investment-grade corporate bonds sent the iTraxx Crossover more than 40bp tighter. Continuación...