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
The deals are expected to price later on Thursday via Bank
of America Merrill Lynch, BNP Paribas, Citigroup and Danske
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
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,
(Reporting by Natalie Harrison, editing by Julian Baker)