Hutchison Whampoa Ltd., billionaire Li Ka-shing’s biggest company, began marketing a sale of $3 billion of 6- and 10-year bonds denominated in U.S. dollars, according to people familiar with the transaction.
The $2 billion of six-year notes will be priced to yield about 227.5 basis points more than similar-maturity U.S. government securities, said the people, who declined to be identified before a public announcement. The $1 billion of 10- year bonds will yield about 235 basis points more than Treasuries, the people said. A basis point is 0.01 percentage points.
Hong Kong-based Hutchison is “a very well-known credit” and the sale “should go down well” with investors, said Brayan Lai, an analyst in Hong Kong at Calyon, the investment banking unit of France’s Credit Agricole SA.
Hutchison, with operations spanning ports, property, energy and telecommunications in 54 countries, has 5.45 percent dollar bonds due to mature in November 2010, according to data compiled by Bloomberg. It agreed to buy back some of the notes at a premium in June after Finance Director Frank Sixt said in April that the company plans to reduce its net debt.
Barclays Capital, Deutsche Bank AG, and HSBC Holdings Plc are managing the sale, the people said.
Li, who predicted China’s stock-market bubble would burst in 2007, last month said the global economy won’t recover this year. Speaking after his companies announced earnings results, he also said the worst is over for containerized shipping.
Shares Advance
Shares of Hutchison, the world’s largest container port operator, climbed 42 percent in Hong Kong trading this year even as China’s exports dropped 22 percent in the first seven months.
Hutchison Whampoa Finance Ltd. will sell the dollar bonds and Hutchison Whampoa will guarantee them, the people said today. Company spokeswoman Laura Cheung declined to comment.
Moody’s Investors Service ranks Hutchison’s debt at A3, its seventh-highest investment-grade rating. Standard & Poor’s grades the debt an equivalent A-.
Hutchison sold dollar bonds in April, raising $1.5 billion from 7.625 percent notes due in 2019. The notes were priced to yield 475 basis points more than similar-maturity Treasuries, Bloomberg data show. The notes last traded at a spread of 235 basis points, according to Royal Bank of Scotland Group Plc prices on Bloomberg.
The $2 billion of six-year notes will be priced to yield about 227.5 basis points more than similar-maturity U.S. government securities, said the people, who declined to be identified before a public announcement. The $1 billion of 10- year bonds will yield about 235 basis points more than Treasuries, the people said. A basis point is 0.01 percentage points.
Hong Kong-based Hutchison is “a very well-known credit” and the sale “should go down well” with investors, said Brayan Lai, an analyst in Hong Kong at Calyon, the investment banking unit of France’s Credit Agricole SA.
Hutchison, with operations spanning ports, property, energy and telecommunications in 54 countries, has 5.45 percent dollar bonds due to mature in November 2010, according to data compiled by Bloomberg. It agreed to buy back some of the notes at a premium in June after Finance Director Frank Sixt said in April that the company plans to reduce its net debt.
Barclays Capital, Deutsche Bank AG, and HSBC Holdings Plc are managing the sale, the people said.
Li, who predicted China’s stock-market bubble would burst in 2007, last month said the global economy won’t recover this year. Speaking after his companies announced earnings results, he also said the worst is over for containerized shipping.
Shares Advance
Shares of Hutchison, the world’s largest container port operator, climbed 42 percent in Hong Kong trading this year even as China’s exports dropped 22 percent in the first seven months.
Hutchison Whampoa Finance Ltd. will sell the dollar bonds and Hutchison Whampoa will guarantee them, the people said today. Company spokeswoman Laura Cheung declined to comment.
Moody’s Investors Service ranks Hutchison’s debt at A3, its seventh-highest investment-grade rating. Standard & Poor’s grades the debt an equivalent A-.
Hutchison sold dollar bonds in April, raising $1.5 billion from 7.625 percent notes due in 2019. The notes were priced to yield 475 basis points more than similar-maturity Treasuries, Bloomberg data show. The notes last traded at a spread of 235 basis points, according to Royal Bank of Scotland Group Plc prices on Bloomberg.