Central China Real Estate CCRE raised $200 million from a five year non-call three bond on Tuesday, but only after abandoning a plan to price inside its own curve.
The company approached investors on Monday morning with price guidance of “the 6% area” for its five-year bond, which featured a call option after three years. But despite a plan to price the deal overnight, the books were still open the following morning.
“We think the initial pricing of the new bond was wrong,” said a source familiar with the transaction, adding that the issuer appeared to have miscalculated the halo effect’ it got from being partly-owned by...
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