Altice jumbo-bond deal already oversubscribed

martes 27 de enero de 2015 09:30 GYT

* Orders flood in for Portugal bond deal

* Bonds set to come tighter than whispers

By Robert Smith

LONDON, Jan 27 (IFR) - The EUR4.6bn-equivalent bond backing Altice's acquisition of Grupo Oi's Portuguese operations is already "multiple-times subscribed," according to a banker close to the deal, which should allow the borrower to get competitive funding levels.

The deal was officially launched on January 23, following approval from Portugal Telecom SGPS shareholders the previous day, and is not scheduled to price until Friday despite the flood of early orders.

"It's now just a pricing exercise," said the banker.

"Most of the early orders were from hedge funds, but all the long-only funds are starting to come in as well."

The gathering momentum means that the deal looks set to come at tighter levels than the price whispers floated last week.

The US$2.06bn dollar tranche of Altice International's 8NC3 senior secured bonds was whispered at a low to mid 7% yield last week, according to an investor, while the EUR500m euro tranche was 125bp tighter in the low 6% range. The US$385m 10NC5 senior notes meanwhile were whispered at mid to high 8%.   Continuación...