LG Card, the Korean credit card company, has priced its inaugural cross border issue of securitized bonds. The $500 million, five-year deal was priced at 50bp over Libor in New York at lunch time on Wednesday. The deal was lead managed by UBS Warburg and CSFB.
The bonds are rated triple-A by Moody's and SP because they have a monoline wrap by specialist insurer Financial Security Assurance. The all-in cost to the issuer, including the price paid for the wrap, is said to be less than 100bp over. This is far cheaper than the company could have raised money if it went out unsecured into the international corporate bond market, validating the company's...
