Danish shipping and oil group A.P. Moller-Maersk has raised 750 million euros ($925.6 million) in the sale of an oversubscribed seven-year bond, its finance director said on Tuesday, which priced at a lower yield than expected, Reuters reports.
The deal was Maersk's second bond offering this year, following a 3 billion Norwegian crown ($504.5 million) issue in March, and only its fifth foray into the corporate bond market since its debut offering in 2009.
"This was a successful transaction with a lot of support," Maersk group finance chief Jan Kjaervik said. "The book is oversubscribed, and we got a big amount (of money) and the price was at the low end of our expectations."
The bond with a coupon of 3.375 percent was issued at a yield of 3.469 percent, priced at 200 basis points over mid-swaps, according to the lead managers.
IFR Markets, a Thomson Reuters news and market analysis service, said demand had been for 2.75 billion euros worth of the bond and that early price indications had been at mid-swaps plus 210 basis points.
The deal was managed by Barclays, Danske Bank, ING, JP Morgan, Mitsubishi and Nordea.
"The banks are looking at the allocation right now," Kjaervik added.
The bonds are being issued within A.P. Moller-Maersk's 3 billion euro medium-term note programme. The company does not have a credit rating.
The proceeds will be used for general corporate purposes, A.P. Moller-Maersk said.
"We want to issue continuously," Kjaervik said. "It is important for us to build up a curve of maturities."
Maersk's four other bonds, which total the equivalent of $2.1 billion, mature between October 2014 and March 2017.
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