Transfield next in line for Reg D

As expected, Incitec Pivot (rated BBB) sold bonds last week, but not in the domestic market. Incitec raised US$800 million for ten years in the US s144A market.

The issuer priced the bonds at 270 basis points over US Treasuries, to yield 6.09 per cent. The company also allows for a 45 bps "make whole" payment and an investor put option, in the event that a change of control event results in Incitec Pivot's credit ratings falling below investment grade.

Transfield Services may be the follow-on issuer, if reports from Reuters are correct.
Unrated Transfield is meeting with US life assurance companies this week, ahead of a Reg D issue.

National Australia Bank was the other Australian borrower active offshore last week. NAB raised ₤600 million for 12 years in the Euromarket, priced at gilts plus 143 bps. This is a considerable improvement on the 285 bps paid by NAB over gilts for 5.5-year funds in May 2009.