Submitted by Tyler Durden
"As we noted yesterday, Goldman was in the market for a 50 year bond at a token amount of $250 million. We speculated this was merely a test to gauge market interest in the space. Sure enough, courtesy of the Fed's free money, interest was massive, and today, Goldman announced that the deal was upsized. Not only that, but price talk has been reduced from 6.25% to 6.125%. What this means is that bank after bank is about to begin rolling out 50 year and possible longer dated debt issuance, as investors no longer care about bullet maturity repayment but are all looking for yield. And it appears that anything over 6% will get massively oversubscribed, maturity be damned. After all, it is other people's money (hopefully).
Full term sheet
ISSUER: Goldman Sachs Group, Inc.
EXPECTED RATINGS: A1 / A / A+ (Negative / Negative / Negative)
REGISTRATION: SEC Registered
SECURITY DESCRIPTION: Senior Unsecured Notes
TOTAL SIZE: $1.3bn (52mm $25 par notes)
PAR AMOUNT: $25 Par
MATURITY: 50yr (November 1, 2060)
PRICE GUIDANCE: 6.125%
PAYMENT DATES: Quarterly on or about the 1st of February, May, August
and November, beginning February 1st, 2011
OPTIONAL REDEMPTION: The senior notes may be redeemed, at any time
on or after November 1st, 2015
USE OF PROCEEDS: General Corporate Purposes
EXPECTED LISTING: NYSE
QDI: Not Eligible
DRD: Not Eligible
SETTLEMENT: T+5 (11/2/2010)
SOLE BOOKRUNNER: GS
JOINT LEADS: WFS (Physical) / BAML/CITI/UBS
Thanks to Bill & Cheers,
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