Carlsberg dips back into bond market after results

Thu Nov 8, 2012 5:06am EST

LONDON, Nov 8 (IFR) - Danish brewer Carlsberg on Thursday announced plans for a new 10-year euro benchmark bond and a tap of a deal issued in June and which has since rallied strongly.

Around 0855GMT, Carlsberg, rated Baa2 by Moody's and BBB by Fitch, began marketing the new 10-year benchmark at mid-swaps plus 110bp area, and a maximum EUR250m increase of its EUR500m 2.625% July 2019 issue at mid-swaps plus 85bp area.

The transactions follow third-quarter results on Wednesday, when the company said a drive to focus on its top brands and major supermarket customers had revived sales in its key Russian beer market in the teeth of tougher regulations and rising taxes.

The deals are expected to price later on Thursday via Bank of America Merrill Lynch, BNP Paribas, Citigroup and Danske Bank.

The last bond from world's fourth-largest brewer was the aforementioned July 2019 issue which priced at 112bp over mid-swaps, and was trading at 75bp over prior to today's announcement.

It attracted a strong order book in excess of EUR4bn, which allowed the leads to tighten guidance from initial talk of mid-swaps plus 120-125bp.

Aside from this, the company also has two euro issues maturing in May 2014 and October 2017, and two sterling issues due in February 2013 and November 2016.

Extrapolating from the pre-announcement spreads of the euro paper suggests a new issue premium for the 10-year of 15bp if the bond were to price in line with initial price guidance, observers said.

(Reporting by Natalie Harrison, editing by Julian Baker)

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