General Electric Capital Corp (GECC) $350 million 13-year bond: Goldman Sachs
Part of a trio of deals led by Goldman and SBC Warburg that totalled $1.05 billion. The spread was given a couple of extra basis points to compensate for the unusual maturity. The issue was priced at 33bp, but soon tightened to 30bp. "Everyone wanted to get involved in this deal. It filled a need for longer-dated paper," commented one syndicate head. Demand came predominantly from Switzerland and the UK.
US West Capital Funding $4.1 billion corporate bond: Merrill Lynch
At the time the largest investment-grade corporate bond in history. The deal came in six tranches and was increased from its original size of $2 billion in response to overwhelming demand. Additional 35-year and 100-year tranches were added, illustrating investors' willingness to stretch maturity in search for higher yields.
At the time the largest investment-grade corporate bond in history. The deal came in six tranches and was increased from its original size of $2 billion in response to overwhelming demand. Additional 35-year and 100-year tranches were added, illustrating investors' willingness to stretch maturity in search for higher yields.