date:Aug 04, 2014
id for 30-year bonds in the high-yield market, said a senior syndicate manager away from the bond issue.
Staying away from the risk of tipping into the Double B category can save a company 100bp or more in cost.
Tyson is aiming for a 3.91% average weighted interest rate on its bonds, according to Fitch. Its most recent issue was a 10-year in 2012, which was quoted in the past week at a dollar price of 106.25, 116bp over Treasuries and a G-spread of 140bp.
Assuming a credit curve of about 25bp