Reykjavik (IFN) Iceland's Kaupthing Bank issued USD3 billion in bonds in the United States on Wednesday, the bank announced.
This completes Kaupthing Bank's refinancing of its long-term debt maturing in 2007. The issue was heavily oversubscribed and was substantially increased from what was originally planned, the bank said.
Kaupthing Bank issued three tranches with three, five and ten year maturities. The three-year (maturing January 2010) floating rate tranche of USD1.0 billion was priced at LIBOR + 70 bp. The five-year fixed rate tranche of USD1.5 billion was priced at US Treasuries + 130 bp. The ten-year fixed rate tranche of USD500 million was priced at US Treasuries + 155 bp.
The bonds were sold to more than 200 institutional investors and the issue was heavily oversubscribed, with an order book of USD9 billion when it was closed. This issue represents Kaupthing Bank's largest ever loan, the bank said.
Citigroup, Lehman Brothers, Merrill Lynch and Credit Suisse arranged the issue.
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