Korean electricity utility Kepco priced a $250 million exchangeable yesterday Thursday that will potentially monetize about half of its 43% stake in the country's second largest fixed line carrier, Powercomm. With ING and Good Morning Securities as lead managers, the deal was modelled on the Korean government's successful exchangeable of November 2001 - Korea Deposit Insurance Corporation KDIC into Cho Hung and Woori Banks.
Terms for the new deal comprise a five-year maturity and issue price of par with a coupon of 2% and redemption at 109.13%. There is a put option in year three at 102.74% to yield 2.88% or 48bp over Treasuries. The deal was marketed on a range of 40bp...
