Hotel Shilla bond sale oversubscribed amid recovery in leisure demand Bids totaling $726 million received with oversubscription rate of almost four times
Translated by Ryu Ho-joung 공개 2022-04-25 08:10:20
이 기사는 2022년 04월 25일 08:07 thebell 에 표출된 기사입니다.
Hotel Shilla, which operates duty-free outlets and high-end hotels, has seen strong investor demand in its bond sale as the travel industry recovers from Covid-19.The offering attracted 900 billion won ($726 million) in orders during bookbuilding on April 20, meaning the deal was almost four times oversubscribed, according to sources.
The South Korean issuer’s three tranches of notes with 2-year, 3-year and 5-year maturities received orders worth 310 billion won, 530 billion won and 60 billion won, respectively, compared to original targets of 70 billion won, 150 billion won and 30 billion won.
The 2-year and 3-year tranches increased to 120 billion won and 200 billion won, respectively, bringing the total raised to 350 billion won.
The 2-year note was priced on par with the average yield calculated by four major local credit rating agencies. Final prices were set at 5bp below the average yield for the 3-year and 13bp over the average yield for the 5-year.
“Asset managers, securities firms and banks piled into the 2-year and 3-year notes, while the 5-year attracted orders mainly from insurance companies,” an investment banking source said.
“Strong demand indicates investors are upbeat about Hotel Shilla’s earnings prospects as expectations are rising that the coronavirus pandemic would soon become endemic.”
Hotel Shilla said during its latest investor call that, with Covid-related restrictions getting lax, it was well positioned to benefit from an increase in international flights and pent-up travel demand. The company also expected continued improvement in earnings. It swung back to profits last year thanks to cost reduction after a loss in 2020 when the company was hit hard by the outbreak of coronavirus.
Cheaper prices also attracted investors. Hotel Shilla’s notes trade at 20-30bp higher than other AA- rated tranches. “Investors might have thought that the deal was an opportunity to bargain hunt,” an industry insider said.
The deal marked the company’s first issue of a 2-year note. “Investor demand for shorter-dated notes is increasing and Hotel Shilla doesn’t have to issue longer-dated debt at a high yield either,” said the industry insider.
The proceeds from the bond sale, which will be completed on April 28, will be used for repayment of existing debt and general corporate purposes. Korea Investment & Securities, KB Securities and NH Investment & Securities are joint bookrunners. (Reporting by Ji-hye Lee)
< 저작권자 ⓒ 자본시장 미디어 'thebell', 무단 전재, 재배포 및 AI학습 이용 금지 >
관련기사
best clicks
최신뉴스 in 전체기사
-
- [한경협 파이낸셜 리포트]'돈 굴리기' 보수적 접근, '채권 투자' 집중
- 콤텍시스템, 'BM 금융 솔루션 데이' 개최
- OTT 티빙, 마케팅담당 임원 '컬리→배민 출신'으로
- [보험경영분석]ABL생명, 투자부문 금리효과에 흑자…진짜는 '회계효과'
- [여전사경영분석]JB우리캐피탈, 고수익 자산 중심 포트폴리오 개편 지속
- [보험사 IFRS17 조기도입 명암]에이스손보, 지급여력비율 개선의 이면 '계약감소'
- [보험 패러다임 시프트]IFRS17에 바뀐 경영전략…'퍼스트 무버' 총력전
- [보험사 해외사업 점검]삼성생명, 성장 느린 태국법인…자산운용 투자 '속도'
- [2금융권 연체 리스크]현대카드, 최상위 건전성 지표…현금서비스·리볼빙 주의
- [보험사 IFRS17 조기도입 명암]DB손보, 새 제도 도입 후 계약부채 확 줄었다