In taking the decision to pull what had ended up as a truncated $1.5 billion 10-year bond offering,Pacific Century CyberWorks-Cable Wireless HKT PCCW-HTK managed to salvage a tiny piece of dignity from a colourful new chapter in its short, but sorry history.
At a launch spread of what had widened out to 325bp over Treasuries, PCCW-HKT abandoned a deal that had become uneconomic in terms of the price it was prepared to pay in order to extend its maturity profile. The move was applauded by the market.
As one head of fixed income research says, It sends out a positive signal because it shows that PCCW wasn't prepared...
