Hutchinson Whampoa is a great company involved in following businesses, as a conglomerate. It also meets my criteria of cash in this turbulent time, of having USD 13bn cash on their balance sheet.
1. Infrastructure & Energy - Involved in Power and Utility in HK, China and UK, Largest energy integrated producer in Canada - over USD 50bn market cap in this sector
2. Property - Largest in HK and China, Rental Portfolio 14.4m sq Ft.
3. Retail - Globally with over 9,400 stores across Asia and Europe
4. Telecom - Leading telecom operator with base of 60m customers in 11 countries
5. Ports - World's largest private port operator with 52 ports in 26 countries
ISSUER: Hutchison Whampoa International (11) Limited
GUARANTOR: Hutchison Whampoa Limited
FORMAT: Reg S / 144A
STATUS: Senior unsecured
RATINGS: A3 (Moody's) / A- (S&P) / A- (Fitch)
ISSUE SIZE: US$ Benchmark
TENOR: 5-Year | 10-Year
SPRD GUIDANCE: T+ 275 Area | T+275 Area
TERMS: SGX Listing, 200k/1k denoms, NY Law
EXP TIMING: Today's business
JOINT BOOKS: Goldman Sachs, HSBC, JP Morgan
Despite market uncertainities, their revenues grew 25% over 2010 (9 month period) in 2011.
While EBITDA growth was 37% for the same nine month period in 2011 versus 2010.
Please note this issue has a minimum denomination of USD 200,000 and USD 1,000 thereafter.
Indicative coupon for 5 year is at 3.60% p.a.
Indicative Coupon for 10 years is at 4.75% p.a.
Comparables:
Hutchinson Whampoa, Issued Sept 2009, maturing Sept 2015 (5 yrs maturity), Coupon 4.625%, trading today at USD 105.50
Hutchinson Whampoa, Issued Sept 2009, maturing Sept 2019 (10 years maturity), Coupon 5.75%, trading today at USD 110.85
Hutchinson Whampoa, Issued Apr 2009, maturing Apr 2019 (10 years maturity), Coupon 7.875%, trading today at USD 122.00
Hutchinson Whampoa, Issued Nov 2003, maturing Jan 2014 (10 years maturity), Coupon 6.25%, trading today at USD 108.00
Hutchinson Whampoa, Issued Feb 2003, maturing Feb 2013 (10 years maturity), Coupon 6.50%, trading today at USD 105.00
They also have a Perpetual security issued in Oct 2010, which perhaps is the only Perpetual security in the world which is currently trading at just slightly above USD 100 levels.
So, if you have any safe money to park in USD, I would suggest to carefully consider this issue and invest.
This is a safe and solid company with excellent track record over last several decades, owned by Mr Li Ka Shing from HK, who invests during turbulent times and his businesses are in very resilient industries and sectors and are globally diversified. And, the bond is being guaranteed by the parent company directly.
I expect rise in bond value as credit risk diminishes, even though US yields may end up rising a bit, from current 2% level for 10 year US Treasuries.
In order to invest in this new issue, you need to hurry today itself over the next few hours, by 2-3pm Dubai time today, before the new issue window closes today and the bond starts trading from tomorrow onwards.
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