GS Entec draws $63M in orders for $44M bond, hits target
What's the deal? South Korea's GS EntecDealroom has a profile for this one. Try Dealroom → has raised US$50.3M (roughly $44 million) through a public bond sale after drawing orders that exceeded its target. The company priced the deal on September 29, with parent-affiliate GS GlobalDealroom has a profile for this one. Try Dealroom → guaranteeing principal and interest payments.
The details: GS Entec sought US$50.3M but received US$72.1M in orders from institutional investors. The two-year tranche drew US$34.4M against a US$21M target, while the three-year tranche pulled US$37.7M against US$29.3M.
Why now? The company will use the entire US$50.3M to repay a bond maturing October 6.
How it priced? GS Entec offered a coupon range of 30 basis points either side of GS Global's benchmark rate. The two-year notes cleared at par with that benchmark; the three-year notes cleared at four basis points above it.
Who's behind it? Korea Investment & Securities, KB SecuritiesDealroom has a profile for this one. Try Dealroom →, Daishin SecuritiesDealroom has a profile for this one. Try Dealroom →, Mirae Asset SecuritiesDealroom has a profile for this one. Try Dealroom →, and Shinhan InvestmentDealroom has a profile for this one. Try Dealroom → served as lead managers. Though filed as unsecured debt, the notes carry a guarantee from GS Global.
The signal: The oversubscription — 143% of the target — reflects investor appetite for guaranteed corporate paper from established Korean groups, even as long-term rates climb globally. The deal sits at the smaller end of the funding spectrum but shows steady demand for refinancing debt backed by strong parent credit.
Read more: edaily.co.kr
Image credit: roy.luck
