li--fung-prices-500-million-bond-tight-of-guidance

Li & Fung prices $500 million bond tight of guidance

The company prices its deal attractively, leading to strong demand and with a strategy designed to ensure a strong performance in the secondary market.
May 10, 2007
Li Fung, the 100-year old trading company operating in the consumer goods market, priced its 10-year $500 million Reg-S senior unsecured fixed-rate bullet bond at 40bp over mid-swaps yesterday. Despite typically low demand for investment-grade paper at this kind of price, the book closed with an oversubscription of $2 billion dollars.

The company conducted 18 one-on-one meetings during the Hong Kong and Singapore roadshow, with 56 investors attending the Hong Kong lunch, excluding bankers and those affiliated to Li Fung. The management succeeded in galvanising considerable interest in the deal which meant the roadshow never got to London, having already raised an impressive order book. The transaction was accelerated in order to price last night....
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