EUROBONDS: France Telecom, Telefonica, Linde, Unitymedia

   By Carol Dean 
 

The European primary bond market saw an array of deals Wednesday including a couple of high yield bond offerings as sentiment remains upbeat ahead of the European Central Bank meeting Thursday when further measures to ease the euro-zone's woes are expected to be announced.

Here is a rundown of how the credit default swap market stands and major deals hitting the market Wednesday.

CDS:

SovX: 6 bps tighter to Tuesday's close at 218.5.5/224.5 bps

iTraxx Europe: 1.4 bps tighter at 142/143 bps

iTraxx Crossover: 6 bps tighter at 562/565 bps

NEW ISSUES

France Telecom (FTE) is planning a 500 million euro ($629.5 million) bond, maturing March 2023, which is set to price at 80 basis points over midswaps.

Spanish telecommunications firm Telefonica SA (TEF) is planning a EUR750 million, five-year bond. Initial price thoughts are in the area of 510 basis points over midswaps.

SP Manweb PLC, an electricity distribution subsidiary of energy provider Scottish Power, is planning a benchmark-size, sterling-denominated bond at 280 to 285 basis points over gilts.

German engineering and chemicals group Linde AG (LIN.XE) is planning a benchmark-size, euro-denominated, eight-year bond. Initial price guidance is in the area of 40 basis points over midswaps.

German cable communications company Unitymedia plans to sell a EUR650 million--initially EUR400 million--10-year, high-yield bond at a yield in the area of 5.625%.

Packaging company Smurfit Kappa Group PLC (SK3.DB), has set price guidance on its EUR400 million equivalent high yield bond in euros and dollars. On a EUR200 million tranche, guidance is between 5.25% and 5.5%. On a $350 million tranche, guidance is between 5% and 5.25%.

FINANCIALS

German agricultural development agency Rentenbank is planning a benchmark-size, U.S. dollar-denominated, five-year bond. Initial price guidance is 15-17 basis points over midswaps.

Wells Fargo & Co. (WFC) plans a sterling-denominated, benchmark 17-year bond. Initial price thoughts are between 155 and 160 basis points over the reference gilt.

SOVEREIGNS

The Kingdom of Belgium has set pricing on its dollar-denominated, benchmark-size, three-year bond at around the low 50s basis points over midswaps.

Write to Carol Dean at [e-mail]