CREDIT Suisse First Boston has launched an innovative two tranche financing in the US 144A market for Telecom New Zealand Finance Limited which achieved the capital treatment requirement of the borrower. The deal consisted of a $150m five year issue paying a coupon of 6.25% and priced to yield 85bp over Treasuries; and a $150m 10 year issue with a coupon of 6.5% and paying a spread of 105bp over. The bonds were rated Aa2/AA- by Moody's and Standard & Poor's respectively. Merrill Lynch and Morgan Stanley were co-leads on both tranches.
February 06, 1998