US issuers continue euro funding unabated

摘要

Honeywell drew a whopping €12bn of orders for a quadruple-tranche bond on Monday, demonstrating that there is plenty of demand in the euro corporate market after a terrible start to 2016. Corporate borrowers have been playing it safe with pricing and deal sizes due to ongoing market volatility so far this year. However, Honeywell decided to take the market head-on, pricing the second largest euro-denominated senior corporate deal of the past five years, after Coca-Cola's €8.5bn five-trancher raised a year ago, according to a banker. "The issuer's target size was €3bn and we knew we had that in the bag, but with the huge demand and relatively small coupons, Honeywell thought it would lock in the extra funding while it could," a banker on the deal said.