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SYDNEY, May 12 (Reuters) - Preliminary pricing on New
Zealand dairy giant Fonterra Co-operative Group Ltd's $300
million U.S. private placement has been set, a market source
said on Monday.
The issue includes a seven-year tranche at around 200 basis
points over U.S. Treasuries, with pricing expected this week,
the source said.
Joint deal arrangers Bank of America and Westpac
Institutional Bank declined to comment.
The U.S. traditional private placement market has been a
popular source of funds for Australian and New Zealand
corporations looking for long-dated debt.
Australian steel maker BlueScope Steel Ltd (BSL.AX) and
engineering firm United Group Ltd (UGL.AX) are also looking to
raise debt issues in the same U.S. market.
Typical buyers of U.S. traditional private placements are
"buy and hold" U.S. insurance companies keen on long-dated
paper to match their liabilities.
(Reporting by Cecile Lefort)
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