LONDON, Feb 10 (Reuters) - Imperial Tobacco IMT.L plans a seven-year euro bond and a 13-year sterling bond, IFR reported on Tuesday.
Guidance has been set at mid-swaps plus 525 to 537.5 basis points on the euro issue and at gilts plus around 500 basis points for the sterling tranche, said IFR Markets, a Thomson Reuters online news and market analysis service.
Imperial Tobacco has appointed Citi, Deutsche Bank, Royal Bank of Scotland and Banco Santander as joint lead managers for the issue, IFR reported.
The bond documentation includes a provision for a 125 basis point step-up in the coupon in the event of a downgrade to speculative-grade ratings, IFR said.
Imperial Tobacco is rated BBB by Standard & Poor’s, Baa3 by Moody’s Investors Service and BBB- by Fitch.
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