​PKN success steady in secondary after ‘aggressive’ price

“PKN Orlen’s debut €500m bond was holding at reoffer in the secondary market on Tuesday morning after the Polish oil refinery took €2.5bn in orders on Monday despite an aggressive  spread, said bankers on the deal.

"It was an unequivocal success," said one banker on the deal. "We had 230 odd investors in a very high quality orderbook and an aggressive price."  Leads BNP Paribas, HSBC, Santander and UniCredit priced the seven year bond at 160bp over mid-swaps. They set IPTs in the high 100s, guidance at 175bp area and final guidance at 160bp-165bp.

As a new issuer with no bonds in any currency to act as comparables the debut  deal needed a full price discovery process, said a banker on the transaction.

Leads had canvassed a broad range of investors and guided pricing based on a range of Polish state owned comparables, he added.

Source:
Gilmore Steven, PKN success steady in secondary after ‘aggressive’ price: GlobalCapital, 24 Jun 2014